Question: Firm R has the target capital structure and component costs of capital shown in the table below Cost Weight Debt 5% 34% Preferred Stock 8%

Firm R has the target capital structure and component costs of capital shown in the table below Cost Weight Debt 5% 34% Preferred Stock 8% 11% Common Stock 9.8% 55% If firm R's marginal tax rate is 34%, estimate the WACC.

9.24%

9.39%

6.65%

7.39%

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