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The Tyler Oil Company's capital structure is as follows: Debt Preferred stock Common equity 25% 25 50 The aftertax cost of debt is 6 percent;

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The Tyler Oil Company's capital structure is as follows: Debt Preferred stock Common equity 25% 25 50 The aftertax cost of debt is 6 percent; the cost of preferred stock is 9 percent, and the cost of common equity in the form of retained earnings) is 12 percent Calculate Tyler Oll Company's weighted average cost of capital in a manner similar to Table 11-1. (Round the final answers to 2 decimal places) Weighted cost Debt (ka) Preferred stock (p) Common equity (ke) (retained earnings) Weighted average cost of capital (K)

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