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The target capital structure consists of 35% of ordinary shares, 10% of preferred shares and 55% of the loan. The cost of its own capital
The target capital structure consists of 35% of ordinary shares, 10% of preferred shares and 55% of the loan.
The cost of its own capital is 18%, the value of preferred shares is 8%, the cost of the loan is 10%. The tax rate is 35%.
Calculate the value of a WACC company.
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