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Compute the company weighted average cost of capital

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Reference no: EM132502496

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.

Type of Capital Percent of Capital Structure Before-Tax ComponentCost

Bonds 59% 14.24%

Preferred Stock 17% 16.04%

Common Stock Please calculate it 13.36%

Reference no: EM132502496

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