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Business, 25.05.2021 16:40 tmiller2862

The firm has $400 million in outstanding debt and $100 million in preferred stock. Its total value is $800 million. Its cost of debt (rd) is 8%, its cost of preferred stock is (rps) 9%, and its cost of common stock (rcs) is 12%. The firm has recently had numerous depreciation tax shields as well as low earnings. Consequently, it does not pay taxes. What is its weighted average cost of capital (WACC) assuming it will continue to not pay taxes

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