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(Weighted average cost of capital) The target capital structure for Jowers Manufacturing is 54 percent common stock, 13 percent preferred stock, and 33 percent debt.
(Weighted average cost of capital) The target capital structure for Jowers Manufacturing is 54 percent common stock, 13 percent preferred stock, and 33 percent debt. If the cost of common equity for the firm is 19.4 percent, the cost of preferred stock is 11.7 percent, and the before-tax cost of debt is 10.1 percent, what is Jowers' cost of capital? The firm's tax rate is 34 percent.
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