Question: Given the following information regarding builtrite's capital structure, calculate its weight average cost of capital assuming a 40% tax bracket. Type of cost Target %

Given the following information regarding builtrite's capital structure, calculate its weight average cost of capital assuming a 40% tax bracket.

Type of cost Target % Cost

Benefit (before tax) 40 7%

Preferred Stock 10 11%

Common Stock 50 16%

12.02%

12.16%

10.78%

11.02%

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