Question: The following data are available from a balance sheet: Type of Capital Total $ M Cost of Capital Debt 30 6% Preferred

 The following data are available from a balance sheet:
   
Type of CapitalTotal $ MCost of Capital
Debt306%
Preferred stock108%
Common stock4010%
Total Capital80 


a. The weighted average cost of capital (WACC), ignoring tax deductibility, using 6 decimals, is ?

 b. Assume the cost of debt is now tax deductible at 30%. All other info is the same. In this case, the weighted average cost of capital WACC?

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