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Targaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent de

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Answer #1

Aftertax cost of debt=6*(1-tax rate)

=6*(1-0.23)=4.62%

WACC=Respective costs*Respective weight

=(0.7*11)+(0.05*5)+(0.25*4.62)

=9.11%(Approx).

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