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QUESTION
debreu beverages has an optimal capital structure that is 50 percent common equity, 40 percent debt, and 10 percent preferred stock. debreu's pretax...
debreu beverages has an optimal capital structure that is 50 percent common equity, 40 percent debt, and 10 percent preferred stock. debreu's pretax cost of equity is 12 percent. Its pretax cost of preferred equity is 7 percent. If the corporate tax rate is 35 percent, what is the weighted average cost of capital?
