Question: answer correctly A firm has the following data: Target capital structure of 20% debt. 10% preferred stock, and 70% common equity; Tax rate is 30%

answer correctly

A firm has the following data: Target capital structure of 20% debt. 10% preferred stock, and 70% common equity; Tax rate is 30% cost of debt is 796, cost of preferred stock is 7.5%, and cost of common equity is 11.5%. Assume the firm will not issue any new stock. What is firm's weighted average cost of capital (WACC)? 9.45 percent 7.50 percent 9.78 percent 11.50 percent

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