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Determine the company weighted average cost of capital

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Problem 1: 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                                          30%                                               11.95%
Preferred Stock                              19%                                                14.75%
Common Stock                            Please calculate it                                 15.18%

Reference no: EM133000666

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