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Determining the pretax cost of debt

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The market value of debt is $325 million, the market value of preferred stock is $185 million, and the total market value of the firm is $925 million. The cost of equity is 17%, the pretax cost of debt is 10%, the cost of preferred stock is 4.5%, and the tax rate is 35%. What is the WACC?

Reference no: EM132505863

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