Question: QUESTION 40 For a typical fimm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at

QUESTION 40 For a typical fimm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at its target capital structure, O a., 1.>> WACC b.1,>r,WACC >4 OC WACC > >1,14 d. 11. >> WACC. O e WACC >>> QUESTION 41 You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00% the cost of preferred is 7.50%, and the cost of retained earnings is 12.75%. The firm will not be issuing any new stock. What is its WACC? O a. 8.98% 6.9.26% O c. 9.54% 0.9.839 De 10.12

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