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Zeta Corporation has decided to purchase a new Tzikafram and has determined the best break-down per capital expenditure will be as follows: 35% Debt, 10%

Zeta Corporation has decided to purchase a new Tzikafram and has determined the best break-down per capital expenditure will be as follows: 35% Debt, 10% Preferred Stock, 30% Common Stock, 15% Retained Earnings and, 10% Newly Issued Stock. What is the Weighted Average Cost of Capital? ra = (wi ri) + (wp rp) + (ws rs) + (wr rr) + (wn rn) =

10 %

8 %

13 %

None of the above

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