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XYZ Corp. has debt with market value of $200 million, common equity with a book value of S120 million, and preferred stocks worth $60 million

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XYZ Corp. has debt with market value of $200 million, common equity with a book value of S120 million, and preferred stocks worth $60 million outstanding. Its stock trades at $50 per share and the firm has 2.5 million shares outstanding. What weights should XYZ Corp. use in its WACC calculation? 2

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