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The Nature Company has a target capital structure of 55 percent debt, 4 percent preferred stock, and 41 percent common stock. Nature Company's cost of
The Nature Company has a target capital structure of 55 percent debt, 4 percent preferred stock, and 41 percent common stock. Nature Company's cost of equity is 18 percent, the cost of preferred stock is 6.5 percent, and the pretax cost of debt is 8.5 percent. What is their WACC given a tax rate of 39 percent?
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