Market values of capital-weighted average cost of capital

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Reference no: EM131347087

(WACC) ABC, Inc has the following market values of capital.

Components--- Value--- Cost

Common stock- $8,000,000-- 13.25%

Preferred stock-$ 150,000---- 8%

Bonds-------- $ 4,000,000--- 5%

ABC has a tax rate of 15%. What is ABC'S weighted average cost of capital ?

Reference no: EM131347087

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