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Question: A corporation has a total of $440 million. The ratio of debt to total capital is .35 and common stock is 40% of the total capital. the corporation has oustanding prfered stock, which has paid 8% dividends consistently for the past five years. The interest on debt is 7% and the cost of common stock is 19.4%. The corporation has a 38% tax rate.

What is the weighted average cost of capital for the corporation?

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Category:- Basic Finance
Reference No.:- M92800430

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