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Business, 04.11.2019 20:31 nauticajanke03

Ghj inc. is investing in a major capital budgeting project that will require the expenditure of $16 million. the money will be raised by issuing $2 million of bonds, $4 million of preferred stock, and $10 million of new common stock. the company estimates is afterminustax cost of debt to be 7%, its cost of preferred stock to be 9%, the cost of retained earnings to be 14%, and the cost of new common stock to be 17%. what is the weighted average cost of capital for this project?

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