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What is the Weighted Average Cost of Capital

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Reference no: EM132725925

Problem - If a company has a capital structure of $5 million common stock with a cost of 17%, $2 million bonds at 4%, $1 million of Short Term Debt with a cost of 7%, and $2 million preferred stock with a cost of 3%, what is the Weighted Average Cost of Capital? The company has a 40% tax rate.

Reference no: EM132725925

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