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You were hired as a consultant to Kroncke Company, whose target capital structure is 36% debt, 12% preferred, and 52% common equity. The after-tax cost

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You were hired as a consultant to Kroncke Company, whose target capital structure is 36% debt, 12% preferred, and 52% common equity. The after-tax cost of debt is 4.00%, the cost of preferred is 6.50%, and the cost of retained earnings is 11.00%. The firm will not be issuing any new stock. What is its WACC? a. 7.17% b. 7.94% c. 8.36% d. 7.04%

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