Question: Turn back to University Products' balance sheet from problem 16. If the preferred stock pays a dividend of $2 per share, the beta of the

Turn back to University Products' balance sheet from problem 16. If the preferred stock pays a dividend of $2 per share, the beta of the common stock is 1.5, the market risk premium is 7%, the risk-free rate is 4%, and the firm's tax rate is 40%, what is University's weighted-average cost of capital?

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