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You are a consultant for Maroon Corporation. You are given the following details about its capital: $21 billion of debt outstanding at an interest rate
You are a consultant for Maroon Corporation. You are given the following details about its capital: $21 billion of debt outstanding at an interest rate of 5.5%, $6 billion of preferred stock with a yield of 5%, and common stock with a market value of $33 billion. The shareholder's required rate of return is 8.25%. Maroon's tax rate is 30%. What is its WACC?
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