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You were hired as a consultant to a company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The after-tax cost

You were hired as a consultant to a company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The after-tax cost of debt is 6.00%, the cost of preferred stock is 7.50%, and the cost of retained earnings is 13.25%. The firm will not be issuing any new stock. What is its WACC?

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