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Business, 19.12.2019 20:31 hwhite41

Avery corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. the interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 40%. the firm will not be issuing any new common stock. what is avery's wacc?

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