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What is snow white wacc

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Reference no: EM132200055

Snow White Corporations target capital structure is 30% debt, 20% preferred stock, and 50% common equity. The interest rate on new debt is 5.50%,the yield on the preferred stock is 7.00%, the cost of common equity from reinvested earnings is 12%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is snow White's WACC?

Reference no: EM132200055

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