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Western Electric has $23,000 shares of common stock outstanding at a current price per share of $57 and a rate return of 14.583 percent. The
Western Electric has $23,000 shares of common stock outstanding at a current price per share of $57 and a rate return of 14.583 percent. The firm has 6,000 shares of 7 percent preferred stock outstanding at a price of $48 a share. The amount of outstanding debt 350,000 and currently sells for 102 percent of the face value. The yield to maturity on the debt is 8.49 percent.What is the firm's weighted average cost of capital if the tax rate is 21 percent?
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