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What should be the cost of preferred stock

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Question - New York Life Insurance's capital structure consists of 35% common stock, 35% preferred stock and 30% of debt. The cost of common stock is 19% and cost of debt is 13%. The tax rate is 30%. What should be the cost of preferred stock to maintain the WACC at 15.68% for New York Life Insurance?

Reference no: EM133144460

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