5) Global Tech Corp has the following capital structure: a. Debt = 35% b. Preferred Stock...

 

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5) Global Tech Corp has the following capital structure: a. Debt = 35% b. Preferred Stock = 15% c. Common Stock = 50% d. After tax cost of debt = 6.5% e. Cost of preferred stock = 10% f. Cost of common equity (in the form of retained earnings) = 13.5% Calculate Global Tech's cost of capital 5) Global Tech Corp has the following capital structure: a. Debt = 35% b. Preferred Stock = 15% c. Common Stock = 50% d. After tax cost of debt = 6.5% e. Cost of preferred stock = 10% f. Cost of common equity (in the form of retained earnings) = 13.5% Calculate Global Tech's cost of capital

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