Yield on the preferred

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You were hired as a consultant to XYZ Company, whose target capital structure is 32% debt, 12% preferred, and 56% common equity. The interest rate on new debt is 8.30%, the yield on the preferred is 4.80%, the cost of common from retained earnings is 13.15%, and the tax rate is 40.00%. The firm will not be issuing any new common stock. What is XYZ's WACC?

Reference no: EM132556785

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