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    Nov 12, 2011, 06:15 PM
    Calculate weighted average cost o capital
    For example, United Business Forms capital structure's Debt is 35%, preferred stock is 15 and common equity is 50. The aftertax cost of debt is 7 percent, the cost of preferred stock is 10 percent, and the cost of common equity(in the form of retained earnings) is 13 percent.

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