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Compute the weighted average cost of capital

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Reference no: EM131152481

Assignment:  Based on the information provided below, compute the Weighted Average Cost of Capital.

 

 

 

Acme International Capital Sources

 

Required

 

 

Return rates

Common Stock and Retained Earnings

 $  400,000

8%

Preferred Stock

 $  100,000

7%

Corporate Bonds

 $  300,000

10%

 

 

 

Corporate tax rate

35%

Reference no: EM131152481

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