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You are estimating your firm's WACC to evaluate potential investments. The firm has outstanding preferred stock trading for $40 that pay on annual dividend of

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You are estimating your firm's WACC to evaluate potential investments. The firm has outstanding preferred stock trading for $40 that pay on annual dividend of 33. You estimate the firm's common equity beto at 1.0 and the expected return on the market at 10%. The risk free rate is 1%. The fem's cumont bonds are trading of a Y Mofos and the firm's marginal tax rate is 35%. The fem's target capital structure is 30% common equity, 8% preferred stock, ond 62% debt what is the firm' WACCROY 6.82 7.63% 0 11.25 7.5%

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