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you were hard as a consultant to a Montevlo company. Whos targeted capital structure is 40% debt 10% preferred 50% common equity. The yield immaturity
you were hard as a consultant to a Montevlo company. Whos targeted capital structure is 40% debt 10% preferred 50% common equity. The yield immaturity on new debt is now 7.50%The cost of the preferred is 7% and the cost of retained earnings 8.5% and the tax rate is 30%. The firm will not be issuing any new stock. What is the companys WAAC
a)8.07%
B)6.77%
c)5.91%
d) 9.29%
e7.05%
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