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You are hired as a consultant to a company, which target capital structure is 30% debt, 20% preferred, and 50% common equity. The after-tax cost
You are hired as a consultant to a company, which target capital structure is 30% debt, 20% preferred, and 50% common equity. The after-tax cost of debt is 5.0%, the cost of preferred stock is 7.80%, and the cost of retained earnings is 12.5%. The firm will not be issuing any new stock. What is the firms WACC
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