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Company weighted average cost of capital

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Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Type of Capital

Percent of Capital Structure

Before-Tax Component Cost

Bonds

34%

9.90%

Preferred Stock

14%

13.78%

Common Stock

Please calculate it

14.52%

Reference no: EM131332351

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