Question: Using the information provided below about Gamma Industries, determine the marginal cost of capital (MCC) Market value weight of long term bonds (debt) Market value

Using the information provided below about Gamma Industries, determine the marginal cost of capital (MCC) Market value weight of long term bonds (debt) Market value weight of preferred stock Market value weight of common stock Tax rate Cost of debt, pre-tax (YTM) Cost of preferred stock Cost of common stock (equity) 45% 12% 43% 20% 8.80% 10.0% 15.8% 10.78% O 11.16% 11.95% o 12.45% 9.56%

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