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You were recently hired to calculate a firm's WACC. The firm's capital structure is 40% debt, 45% common stock, and 15% preferred stock. The AFTER-tax
You were recently hired to calculate a firm's WACC. The firm's capital structure is 40% debt, 45% common stock, and 15% preferred stock. The AFTER-tax cost of debt is 3.5%, the cost of preferred stock is 6.2%, and the cost of retained earnings is 9.1%. What is the firm's WACC? Enter your answer as a decimal with four places of precision.
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