Assignment:
Question 1. Based on the information provided below, compute the Weighted Average Cost of Capital .
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| Acme International Capital Sources |
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Required |
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Return rates |
| Common Stock and Retained Earnings |
$ 400,000 |
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8% |
| Preferred Stock |
$ 100,000 |
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7% |
| Corporate Bonds |
$ 300,000 |
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10% |
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| Corporate tax rate |
35% |
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