Okay so a firm has $12 million in debt, $3 million in preferred stock, and $26 million

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Okay so a firm has $12 million in debt, $3 million in preferred stock, and $26 million in equity.

The corporate tax rate is 30%. The rate of return for debt, preferred stock, and equity is 5%, 2%, and 14%, respectively.

What is the weighted average cost of capital? (please answer to 2 decimal places)

Posted Date: May 15, 2024 01:50 PM

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Okay so a firm has $12 million in debt, $3 million in preferred stock, and $26 million

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To calculate the weighted average cost of capital WACC we need to determine the proportion of each c... View the full answer

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