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What is the firm weighted average cost of capital

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Firm ABC Ltd has debt valued at $16 million, ordinary shares valued at $30 million and preference shares valued at $6 million. The before-tax cost of debt is 2.9%, the cost of ordinary shares is 13.4% and the cost of preference shares is 6.6%. The tax rate is 25%. What is the firm's Weighted Average Cost of Capital?

Reference no: EM132505945

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