Question: Bean's Coffee is trying to determine their weighted average cost of capital (WACC). They've gathered the following information about their capital structure: Capital Source Market

Bean's Coffee is trying to determine their weighted average cost of capital (WACC). They've gathered the following information about their capital structure: Capital Source Market Value (in millions) Book Value (in millions) Required Return Common Stock 200 52 12% Preferred Stock 16 7 7% Debt 56 50 3% Bean's Coffee also has a corporate tax rate of 30%. What is the WACC for Bean's Coffee?

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