Calculate the weighted average cost for a firm

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Reference no: EM13766233

Given the following info, calculate the weighted average cost for a firm:

Percent of Capital Structure: Preferred Stock: 10%, Common Equity: 70%, Debt: 20%

Additional info:

Corporate tax rate: 34%, Dividend, preferred: $8.00, Dividend, expected common: $4.00

Price, preferred: $80.00, Growth rate: 5%, Bond yield: 7%, Price, common: $80.00

Reference no: EM13766233

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