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What is the WACC for a firm with 40% debt, 20% preferred stock, and 40% common stock if the respective costs for these components are
What is the WACC for a firm with 40% debt, 20% preferred stock, and 40% common stock if the respective costs for these components are 9.23% before tax, 12% after tax, and 18% before tax? The firm's tax rate is 35%. (Hint: you are trying to take weighted average of the cost of ALL sources of money) 9.48% 11.16% 12.00% 15.60%
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