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Given the following information. 3ex Percent of capital structure: Debt Preferred stock Common equity Additional information:
Calculate the weighted average cost of capital for Genex Corporation. Line up the calculations in the order shown in Table 11
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Answer #1

B D Famo Cost of debt = Yield * (1-tax rate) = 14%* (1 -0.35) = 9.10% Cost of preferred stock = D/(PO - F) = 14/(124 - 5.80)

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