What is blossom after-tax wacc

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Blossom Co. has a capital structure, based on current market values, that consists of 30 percent debt, 3 percent preferred stock, and 67 percent common stock. If the returns required by investors are 10percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Blossom's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.

Reference no: EM132402900

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