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Current Capital Structure and WACCWeightCostWeighted CostDebt10%6.50%0.65%Preferred15%14%2.10%Equity75%18%13.50%Total100%16.25% WACCTarget Capital Structure and WACCWeightCostWeighted CostDebt40%6.5%2.6%Preferred10%14%1.40%Equity50%18%9%Total100%13% WACCWhat are some differences between these two structures? Whatissues could the target capital structure create?
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