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Determining the wacc of giambono company

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Reference no: EM133056058

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equit y. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 16.00%. The firm will not be issuin g any new stock. What is its WACC?

Reference no: EM133056058

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