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Office Equipment Inc. has a target capital structure of 30% debt, 15% preferred stock and...

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Finance

Office Equipment Inc. has a target capital structure of 30% debt, 15% preferred stock and 55% common equity. Its before tax cost of debt is 8% and its marginal tax rate is 25%. The current price per share of Office Equipment Incs common stock is $24; its last dividend was D0 =$1.80 and is expected to grow at a 5% constant rate. The firms current preferred stock price is $11 per share and pays a preferred dividend of $1.00. What is Office Equipment Inc.s WACC?

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