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What is the wacc

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A firm that currently has $1 million in debt and $2 million in equity and $1 million in preferred stock. The current yield to maturity on the firms debt is 2%. Equity holders require a 6% return and preferred stock holders require a 3.4% return. The current tax rate that applies to the firm is 30%. What is the WACC?

Reference no: EM132083384

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