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Problem:

A balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. The tax rate is 26.00%, rd =7.10%, rps = 6.20%, and rs = 15.60%. If the target capital structure of 31% debt, 9% preferred stock, and 60% common stock,

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Question: What is its WACC? Please show work

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  • Category:- Basic Finance
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