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What is the firm weighted average cost of capital

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Reference no: EM132217820

Question - A firm finances itself with 30% debt, 60% common equity, and 10% preferred stock. The before-tax cost of debt is 5%, the firm's cost of common equity is 15%, and that of preferred stock is 10%. The marginal tax rate is 30%. What is the firm's weighted average cost of capital? Show work if possible.

Reference no: EM132217820

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