Determination of weighted average cost of capital

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Reference no: EM1351378

Here is a condensed version of your firm's balance sheet:

Total Liabilities $30, 000, 000
Preferred Stock 10, 000, 000
Common Stock 60, 000, 000
Total Assets $100, 000, 000 Total Liabilities & Equity $100, 000, 000

If your firm's aftertax cost of debt is 6%, the cost of preferred stock is 10%, and the cost of common stock is 11%, what is the Weighted Average Cost of Capital (WACC)?

Reference no: EM1351378

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