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Business, 08.12.2020 16:30 dbrwnn

You were asked to estimate the cost of capital for XYZ Inc. The firm is expected to have a target capital structure of 30% debt, 20% preferred, and 50% common equity. The after-tax cost of debt is 4.50%, the cost of preferred stock is 6.00%, and the cost of retained earnings is 11.50%. The firm does not plan to issue any new stock. What is its WACC

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