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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 firm's cost
You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The firm's cost of debt is 9.23%, 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 if the firm's tax rate is 35%?
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