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Yesterday Inc's capital structure is 35 percent debt, 10 percent preferred stock and 55 percent common equity. The firms bonds have a YTM of 5.00%
Yesterday Inc's capital structure is 35 percent debt, 10 percent preferred stock and 55 percent common equity. The firms bonds have a YTM of 5.00% percent, Common stock equity required a 11.00% return, and Preferred stocks require a 7.25% return. The firms tax rate is 30%. What is the firm's weighted average cost of capital? Please use excel to solve and show formulas. Thanks! | |||||||||
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