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Business, 05.12.2019 17:31 bryce12351

Baron corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. its cost of equity is 13 percent, the cost of preferred stock is 6 percent, and the pretax cost of debt is 7 percent. the relevant tax rate is 25 percent.
a. what is the company’s wacc? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
b. what is the aftertax cost of debt?
a. wacc %.
b. aftertax cost of debt %.

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