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May 27, 2015

Homework Help: finance

Posted by adam on Saturday, April 2, 2011 at 7:02pm.

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.75%. The firm will not be issuing any new stock. What is its WACC?

(Points : 5)
8.98%
9.26%
9.54%
9.83%
10.12%

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