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Business, 30.05.2020 01:00 rubyhart522

GHJ Inc. is investing in a major capital budgeting project that will require the expenditure of $20 million. The company plans to issue $2 million of bonds, $4 million of preferred stock, and $10 million of common stock to raise external funds. The company estimates its after-tax cost of debt to be 7%, its cost of preferred stock to be 9%, the cost of retained earnings to be 14%, and the cost of new common stock to be 17%. What is the weighted average cost of capital for this project

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