What it the weighted average of capital

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US Steel has a capital structure that is compromised of 50% debt, 10% preferred stock, and 40% common equity. US Steel's pretax cost of debt is 10%. It's pretax cost of preferred equity is 11%, and its pretax cost of common equity is 12%. If the corporate tax rate is 50%, what it the weighted average of capital?

Reference no: EM13553318

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