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Compute the company weighted average cost of capital

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Reference no: EM131419947

Given the following information on Big Brothers Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company marginal tax rate is 40%.

Round the answer to two decimal places in percentage form

Type of Capital

Percent of Capital Structure

Before-Tax Component Cost

Bonds

34%

10.35%

Preferred Stock

15%

14.88%

Common Stock

Please calculate it

17.08%

Reference no: EM131419947

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