Question: capital structure that is financed, based on current market values with 20% debt, 10% preference shares and 70% ordinary shares. If the return offered to

capital structure that is financed, based on current market values with 20% debt, 10% preference shares and 70% ordinary shares. If the return offered to the investors for each of those sources is 8.4%, 5.6% and 16.7% for debt, preference shares and ordinary shares, respectively, what is Toys Ltd's after tax WACC? Assume that the company's corporate tax rate is 30%

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