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    haseliz89's Avatar
    haseliz89 Posts: 1, Reputation: 1
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    #1

    Apr 16, 2011, 01:52 PM
    WACC (Weighted Average Cost of Capital)
    The market value of Bernanke's debt, preferred stock, and common equity equals its book value. Bernanke's cost of debt is 10.0%, its cost of preferred stock is 7.7%, and its cost of common equity is 15.2%. If Bernanke's tax rate is 40%, what is the firm's WACC?
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #2

    Apr 20, 2011, 06:26 PM

    Read the rules...

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