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What after - tax rate of return must shawhan supply earn

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Question - Shawhan Supply plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt010%; preferred stock011%; and common stock#18%. Assuming a 40% marginal tax rate, what after - tax rate of return must Shawhan Supply earn on its investments if the value of the firm is to remain unchanged?

Reference no: EM133075328

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