Calculate the weighted average cost of capital

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Question - The effective Tax rate on WACC K. Bell Jewelers wishes to explore the effect on its cost of capital of the rate at which the company pays taxes. The firm wishes to maintain a capital structure of 20% debt, 20% preferred stock, and 60% common stock. The cost of financing is 11%. Calculate the weighted average cost of capital (WACC) given a tax rate of 35%.

Reference no: EM133032095

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