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-   -   Assuming a target capital structure of: (https://www.askmehelpdesk.com/showthread.php?t=717721)

  • Nov 18, 2012, 09:21 AM
    Belles08
    Assuming a target capital structure of:
    Assuming a target capital structureof:

    40% debt

    20% preferred stock

    40% common equity

    What would be the WACC given the following: all debt will be from the sale of bonds with a coupon of 10% (assume no flotation costs), preferred stock's associated cost will be 13%, and common equity will be from retained earnings with an associated cost of 15%. The tax rate for this corporation is 30%.

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