Firm has target capital structure-what is firm wacc

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A firm has a target capital structure of 40% common stock, 5% preferred stock and 55% debt. Its pre-tax cost of equity is 19%, the pre-tax cost of preferred stock is 8%, and the pre-tax cost of debt is 11%. The relevant tax rate is 34%. What is firm’s WACC?

Reference no: EM131606279

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