A firms target capital structure is 10 preferred 45 debt


A firm’s target capital structure is 10% preferred, 45% debt, and 45% common equity. If the firm has cost of debt = 7.5%, tax rate = 40%, cost of preferred stock = 9.0%, and cost of common equity = 11.5%, what is its WACC? Please show all work.

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Financial Management: A firms target capital structure is 10 preferred 45 debt
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