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The following information is given: - Cost of retained earnings =14% - Cost of new common stock =16% - YTM of bonds is 6%. -
The following information is given: - Cost of retained earnings =14% - Cost of new common stock =16% - YTM of bonds is 6%. - The amount available in retained earnings =$120 million - The firm's marginal tax rate is 40% - The target capital structure calls for 40% debt and $60% common equity. Draw and label this firm's MCC schedule
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