Business
Business, 08.10.2019 22:00, avrieell8584

Acompany has a capital structure that includes 30 debts, 10 preferred stock, and 60% common stock. the before-tax cost of debt is 11%. the cost of preferred stock is 10.3%. the cost of common stock is 14.7%. new common stock sales cost approximately 16%. the marginal tax rate is 40%. according to the above information, what is the weighted average cost of capital for this company?
a. 10.3%
b. 11%
c. 11.8%
d. none of the above

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Answers: 3

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Acompany has a capital structure that includes 30 debts, 10 preferred stock, and 60% common stock. t...

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