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What will be wacc for longhorns

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Reference no: EM132794100

Problem 1: Suppose that Longhorns, PLLC, has a capital structure of 58 percent common stock, 20 percent preferred stock, 22 percent debt, and that its before-tax cost of debt is 11 percent while its cost of common is 15 percent and cost of preferred is 8%. If the appropriate weighted-average tax rate is 25 percent, what will be its WACC?

Reference no: EM132794100

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