Compute the company weighted average cost of capital

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

Type of Capital Percent of Capital Structure Before-Tax Component Cost

Bonds 54% 9.21%

Preferred Stock 10% 12.43%

Common Stock Please calculate it 16.51%

Reference no: EM131556929

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