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Business, 20.08.2021 03:50 batmandillon21

Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, rd, is 7.9%, the firm's cost of preferred stock, rps, is 7.4% and the firm's cost of equity is 11.9% for old equity, rs, and 12.3% for new equity, re. What is the firm's weighted average cost of capital (

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