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Calculate the wacc of xyz company

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Reference no: EM132572237

XYZ Company holds 30% Debt, 30% Preferred stock, 40% Common Stock. Interest rate on debt is 7.50%. Price of preferred stock is $90, and dividend on preferred stock is $6.00. Company just paid dividend of $2.50 on Common stock and price of Common stock is $30. Dividend on common stock grows at 5%. Company pays tax at 40%. Calculate the WACC of XYZ Company.

Reference no: EM132572237

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