Target capital structure-determine their cost of capital

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Bartlett Company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after tax cost of debt is 6%, the cost of preferred is 7.50%, and the cost of common using reinvesting earnings will be $800,000. You were hired as a consultant to help determine their cost of capital. What is its WACC?

Reference no: EM13921051

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Target capital structure-determine their cost of capital : Bartlett Company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after tax cost of debt is 6%, the cost of preferred is 7.50%, and the cost of common using reinvesting earnings will be $800,000. You were hired as a c..

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