You were hired as a consultant to Giambono Company, whose target capital structure is...

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Accounting

You were hired as a consultant to Giambono Company, whose target
capital structure is 40% debt, 15% preferred, and 45% common
equity. The after-tax cost of debt is 6.00%, the cost of
preferred is 7.50%, and the cost of retained earnings is
13.00%. The firm will not be issuing any new stock.
What is its WACC?9.38%11.44%9.19%7.22%10.22%

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