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Business, 23.10.2020 23:20 jako12

You were hired as a consultant to Kangaroo Corporation, whose target capital structure is 30% debt, 5% preferred, and 65% common equity. The before-tax cost of debt is
9.55%, the yield on preferred is 8.75%, and the cost of retained earnings is 14.00%.
The tax rate is 35%.

1. What is the company's WACC?

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