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You were hired as a consultant to Quigley Company, whose target capital structure is 40% debt, 20% preferred, and 40% common equity. The interest rate
You were hired as a consultant to Quigley Company, whose target capital structure is 40% debt, 20% preferred, and 40% common equity. The interest rate on new debt is 5.0%, the yield on the preferred is 6.00%, the cost of retained earnings is 13%, and the tax rate is 35%. The firm will not be issuing any new stock. What is Quigley's WACC? O 8.75% 8.15% 6.60% 7.70%
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