The interest rate on new debt

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Reference no: EM131315731

Weir Inc. has a target capital structure of 30% debt, 20% preferred, and 50% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 8.8%, and the tax rate is 40%. The WACC for Weir is:

6.81%

6.62%

6.77%

6.99%

6.60%

Reference no: EM131315731

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