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What is the weighted-average cost of capital (WACC) for a firm with the following sources of funds and corresponding required rates of return: $5million common
What is the weighted-average cost of capital (WACC) for a firm with the following sources of funds and corresponding required rates of return: $5million common stock at 16%, $500,000 preferred stock at 10%, and $3million debt at 9%. All amounts are listed at market values and the firm's tax rate is 35%.
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