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You were hired as a consultant to Giambono Company, whose target capital structure is 50%...

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Accounting

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You were hired as a consultant to Giambono Company, whose target capital structure is 50% debt, 15% preferred, and 35% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 0.00%, and the cost of retained earnings is 11.75%. The firm will not be issuing any new stock. What is its WACC? Ca. 8.58% Ob. 5.31% Cc. 7.11% Cd. 8.31% Oe. 4.20%

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