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A corporation has the following capital structure: Debt $15,000 Preferred stock 10,000 Equity 75,000 Assume the corporation has a 40% tax rate, the marginal cost of debt is 7.9 percent, marginal cost of preferred stock is 9 percent and marginal cost of equity is 10.25 percent. Find the weights for debt, preferred stock and equity.

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Financial Management, Finance

Category:- Financial Management
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