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26) a) A firm finances its projects with 45% common stock, 15% preferred stock, and...

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Accounting

26) a) A firm finances its projects with 45% common stock, 15% preferred stock, and 40% debt. The firm has a 34% marginal tax rate. The cost of equity is 9%, the cost of preferred is 8%, and the cost of debt is 7%. What is the WACC?

b) Explain the process of depreciation and interest expense while calculating operating cash flow.(5+5)

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