question archive A firm uses debt, preferred stock, and common stock to raise capital

A firm uses debt, preferred stock, and common stock to raise capital

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A firm uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportions: debt,55%; preferred stock,10%; and common stock, 35%. If the cost of debt is 6.7%, preferred stock costs 9.2%; and common stock costs 10.6%. The Firm' WACC is: Select one: 0 a 1.08% O b. 8.31%

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