1)Suppose a company's capital structure consisted of 38% debt, 10% preferred shares, and 52% common...
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Accounting
1)Suppose a company's capital structure consisted of 38% debt, 10% preferred shares, and 52% common equity. Assuming the company's cost of debt was 4.0%, the cost of preferred shares was 6.5%, and the cost of common equity was 9%, estimate the company's WACC. Last year, the company had an EBT of $100M and paid $36M in tax. Please show your work.
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