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Question
Flipping Your Wig Toupee Company has determined the following information:| Source of Capital | Book Value | After-tax Cost |
| Long-term debt | $700,000 | 5.3% |
| Preferred stock | $ 50,000 | 12.0% |
| Common stock | $650,000 | 16.0% |
What is the company's weighted average cost of capital (rounded)?
a. 10.5%
b. 20.6%
c. 15.2%
d. 18.1%
Answer
This answer is hidden. It contains 62 characters.
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