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Business, 19.04.2021 15:40 tiwaribianca475

Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock and 20% debt. The firms has a cost of debt of 7.87%, a cost of preferred stock equal to 10.76% and a 13.91% cost of common stock. The firm has a 35% tax rate. You answer should be entered as a %, for example 15.48%

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