A companys target capital structure consists of 30% debt, 20% preferred stock and 50% common...
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A companys target capital structure consists of 30% debt, 20% preferred stock and 50% common stock. The yield to maturity on this company bonds is 9%, the cost of preferred stock is 11% and the cost of retained earnings is 13%. The tax rate of this company is 40%. What is the WACC of this company?
| 11.32% | ||
| 12.32% | ||
| 13.32% | ||
| 10.32% | ||
| 14.32% |
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