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Calculate weighted average cost of capital-copernicus inc

Question:

Copernicus Inc. has determined that its target capital structure will be 60% debt, 10% preferred stock, and 30% common stock. As the financial manager, the CFO has informed you that the company's before tax cost of debt is 10%, preferred stock is 14%, and common stock is 16%. In addition, the company's marginal tax rate is 40%. Based on the information provided, calculate the weighted average cost of capital (WACC).

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## Q : What is the present value for given discount rate

Subsequent annual cash flows will grow at 4% in perpetuity. What is the present value of the technology if the discount rate is 10%?