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You Were Hired as a Consultant to Giambono Company,whose Target

question 15

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You were hired as a consultant to Giambono Company,whose target capital structure is 40% debt,15% preferred,and 45% common equity.The after-tax cost of debt is 6.00%,the cost of preferred is 7.50%,and the cost of retained earnings is 12.75%.The firm will not be issuing any new stock.What is its WACC?


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