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You were hired as a consultant to Giant Foot Company, whose target capital structure is 45% debt, 15% preferred stock, and 40% common equity. The

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You were hired as a consultant to Giant Foot Company, whose target capital structure is 45% debt, 15% preferred stock, and 40% 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 12.00%. The firm will not be issuing any new stock. What is its WACC? (Multiple Choice) Excel Link: Excel Sheet.xIsx 7.68%8.93%7.49%6.69%8.63%

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