Given the following information on Big Brothers, Inc. capital structure, compute the companys weighted average...
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Accounting
Given the following information on Big Brothers, Inc. capital structure, compute the companys weighted average cost of capital (WACC). The companys marginal tax rate is 40%.
Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
| Type of Capital | Percent of Capital Structure | Before-Tax Component Cost |
|---|---|---|
| Bonds | 60% | 11.66% |
| Preferred Stock | 20% | 15.92% |
| Common Stock | Please calculate it | 16.04% |
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