Analysts predict that their future cost of debt

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Mimi Meow is thinking about expanding to another location which they expect will earn an IRR of 10%. Assume that their capital structure consists of 50% common stock, 20% preferred stock, and 30% debt. Further, analysts predict that their future cost of debt will be 4% and their cost of equity is 13%. We also know that the expected return of preferred stock is 5%. The firm s tax rate is 35%. What is this firm s WACC? 8.23% 8.70% 7.33% 6.81% None of these

Reference no: EM131176613

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