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You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax
You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.50%. The firm will not be issuing any new stock. What is its WACC? a. 11.16% O b. 7.59% c. 9.15% O d.9.88% O e. 10.98%
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