Compute the marginal cost of capital for the firm

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Reference no: EM132571619

New bonds with a face value of 1,000 will be sold with a coupon of 9% and the preferred will have a 91/2 %, par 100; and they both will be sold at par. Common stock will be sold to net the firm $25/share. The tax rate is 40%. Compute the Marginal cost of capital for the firm.

Reference no: EM132571619

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