Business, 15.04.2021 20:50, brittainpolk453

The Classic Car Co. has a before-tax cost of debt capital of 9%, a cost of preferred stock of 10%, a cost of equity capital of 14%, and a marginal tax rate of 40%. The market values of its debt, preferred stock and common stock are $40 million, $20 million, and $60 million respectively. Therefore, for evaluating average risk projects, the manager should use a discount rate of . (Do not round intermediate calculations. Round final answer to two decimal places.)

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The Classic Car Co. has a before-tax cost of debt capital of 9%, a cost of preferred stock of 10%, a...