Evaluate the weighted average cost of capital

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Reference no: EM13302993

Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7).

Acme International Capital Sources

 

Required
Return rates

Common Stock and Retained Earnings

$ 400,000

8%

Preferred Stock

S 100,000

70/0

Corporate Bonds

S 300,000

10%

Corporate tax rate

35%

 

 

 

Reference no: EM13302993

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