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What is the Weighted average cost of capital of XYZ firm if long term debt is $100,000, preferred equity is $56,000 and common equity is
What is the Weighted average cost of capital of XYZ firm if long term debt is $100,000, preferred equity is $56,000 and common equity is $200,000? the cost of debt is 6%, cost of preferred equity is 7% and cost of common equity is 8.5%. Tax rate of this firm is 30%.
A.5.60%
B.6.76%
C. None of the above
D.7.06%
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