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1. The target capital structure for a firm is 40% common stock,10% preferred stock and 50% debt. If the cost of common equity is18%, the cost of preferred stock is 10%, the before-tax cost ofdebt is 8%, and the firm’s tax rate is 35%. What is its weightedaverage cost of capital?Indicate the detailed steps on how to use a FINANCIALCALCULATOR to solve the problems.
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Accounting
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