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Find What is Jowers cost of capital

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Reference no: EM132750419

Problem 1: The target capital structure for Jowers Manufacturing is 45 percent common stock, 17 percent preferred stock, and 38 percent debt. If the cost of common equity for the firm is 19.6 percent, the cost of preferred stock is 11.7 percent, and the before-tax cost of debt is 10.9 percent, what is Jowers' cost of capital? The firm's tax rate is 34 percent.

Reference no: EM132750419

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