Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7).
| Acme International Capital Sources |
|
|
Required |
| |
|
|
Return rates |
| Common Stock and Retained Earnings |
$ 400,000 |
|
8% |
| Preferred Stock |
$ 100,000 |
|
7% |
| Corporate Bonds |
$ 300,000 |
|
10% |
| Corporate tax rate |
35% |
|
|
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