1. Faber Corporation has a target capital structure of 40% bond financing, 10% preferred stock...
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1. Faber Corporation has a target capital structure of 40% bond financing, 10% preferred stock financing, and 50% common stock financing. The cost of bonds is 7%, the cost of preferred stock is 10.5%, and the cost of common stock financing is 17%. What is Faber's WACC? a) 12.35% b) 15.37% c) 13.75% d) 11.50%
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