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Your company is capitalized as follows: Bank loan of SSB at a 12% annual effective interest rate: Preferred Stock of $2B ata 14% annual dividend

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Your company is capitalized as follows: Bank loan of SSB at a 12% annual effective interest rate: Preferred Stock of $2B ata 14% annual dividend rate: Common Stock with a market cap of $3B You estimate your shareholder's rEquity (cost of equity or required rate of return) is 16%. Your effective tax rate is 40%. What is your after-tax WACC? Click to open: 11.35% 11.20% 13.75% 8.25% 10.65%

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