Corporation expects their before-tax cost of debt

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Corporation expects their before- tax cost of debt to be 12%; preferred stock will require a 12.5% return; common equity needs must be met by issuing new common stock which will require an 18% return. The capital structure is composed of 50% debt, 10% preferred stock, and the rest common equity; this structure is not expected to change substantially in the foreseeable future. the firm's marginal tax rate 35%. what is Merritt's MCC?

Reference no: EM132069298

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