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What impact do these new weights have on the wacc

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Reference no: EM132993376

The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm's cost of capital in the medium term and believes they should be as follows

Long-term debt 40%
Preference Shares 15%
Ordinary Shares 45%

Problem 1: What impact do these new weights have on the WACC?

Reference no: EM132993376

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