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Zooma Zooma Zoom, a meeting platform company uses $50 million of debt, $20 million of preferred stock, and $120 million of common equity to finance
Zooma Zooma Zoom, a meeting platform company uses $50 million of debt, $20 million of preferred stock, and $120 million of common equity to finance its assets. If the before-tax cost of debt is 6%, cost of preferred stock is 8%, and the cost of common equity is 12%, calculate the weighted average cost of capital for the firm assuming a tax rate of 30%.
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7.42%
9.27%
9.53%
9.75%
10.00%
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