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The Tom Corp wants to know its cost of capital. Its current capital structure calls for 4 5 % debt, 1 5 % preferred stock
The Tom Corp wants to know its cost of capital. Its current capital structure calls for debt, preferred stock and common equity. Initially, common stock will be in the form of retained earnings. The costs of the sources of financing are: debt: ; preferred stock: ; retained earnings: ; and new common stock, What is the weighted cost of capital? Use decimals
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