Question: Waka Flocka Flame Inc. has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. Waka Flocka Flame Inc's pretax

Waka Flocka Flame Inc. has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. Waka Flocka Flame Inc's pretax cost of equity is 9%. Its pretax cost of preferred equity is 7%, and its pretax cost of debt is also 5%. If the corporate tax rate is 21%, what is the weighted average cost of capital? Waka Flocka Flame Inc. has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. Waka Flocka Flame Inc's pretax cost of equity is 9%. Its pretax cost of preferred equity is 7%, and its pretax cost of debt is also 5%. If the corporate tax rate is 21%, what is the weighted average cost of capital? Between 6% and 7% Between 9% and 10% Between 8% and 9% Between 7% and 8% Between 10% and 11%

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