Question: ABC's target capital structure calls for 20% debt, 5% preferred stock, and 75% common equity, all taken at market value. Assuming that new capital is

ABC's target capital structure calls for 20% debt, 5% preferred stock, and 75% common equity, all taken at market value.

Assuming that new capital is raised in these percentages and that all common equity is raised as retained earnings, what is ABC's WACC?

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