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Business, 04.11.2019 22:31 pillgiing

Avery corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. the interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 40%. the firm will not be issuing any new common stock. what is avery's wacc? a. 8.15%b. 8.48%c. 8.82%d. 9.17%e. 9.54%

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