Calculate the weighted average cost of capital for hart inc

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Question: Hart Inc. has a target capital structure of 40% debt, 20% preferred, and 40% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 9.6%, and the tax rate is 40%. Calculate the weighted average cost of capital for Hart Inc. 6.81%

Reference no: EM131979030

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