A company has a before tax cost of common equity of 14 a, Ask an Expert

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A company has a before tax cost of common equity of 14%, a pretax cost of debt 6%, a cost of preferred equity 8%, and a marginal tax rate of 34%. The current market value of the company is $150 million, with $75 million common equity, $50 million debt, and $25 million preferred equity. What is the company's weighted average pre tax cost of capital?

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Financial Management, Finance

Category:- Financial Management
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