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Your company has determined that in the future it will raise new capital according to these proportions: 25% debt; 25% preferred stock; and 50% common
Your company has determined that in the future it will raise new capital according to these proportions: 25% debt; 25% preferred stock; and 50% common equity. The after-tax cost of debt is 4%. The cost of preferred stock is 6%. The cost of common equity is 12% Required: Compute weighted average cost of capital.
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