What is the company weighted average cost of capital

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Reference no: EM133434827

Question: Bingo Inc. has a target capital structure of 30% debt, 25% preferred stock, and 45% common equity. The company's after-tax cost of debt is 7%, its cost of preferred stock is 11%, and its cost of equity is 15%. The company stock has a beta of 1.52 and the company's marginal tax rate is 30%. What is the company's weighted average cost of capital (WACC)?

Reference no: EM133434827

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