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Compute WACC given information about capital structure

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If a firm's capital structure is 40% debt, 10% preferred stock, and 50% common stock, their tax rate is 40%, and this Kd = 9%, Kp = 5%, and Ks = 12%, what is the firm's WACC? Also, show the formula and entries on a financial calculator.

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Solution Summary

The solution shows the formulas and the calculation to arrive at the answer

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WACC is calculated by multiplying the cost of each capital component by its proportional weighting ...

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