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    What is the WACC of the following capital structure?
    30% debt
    20% preferred
    50% common equity
    after tax debt 8% and the cost of preferred is 6.5%
    and the total retained earnings is 13.25
    The firm will not issue new stock.

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    https://brainmass.com/business/weighted-average-cost-of-capital/wacc-specific-capital-structure-241326

    Solution Preview

    What is the WACC of the following capital structure?
    30% debt
    20% preferred
    50% common equity
    after tax debt 8% and the cost of preferred is 6.5%
    and the total ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the WACC of the following capital structure.

    $2.49

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