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Question
What is the weighted average cost of capital (rounded) for Night Light Security Services given the following information (the tax rate for Night Light is 30%):| Sources | Book Value | Before Tax Cost of Capital |
| Debt | $1,500,000 | 10% |
| Preferred stock | $ 800,000 | 12% |
| Common stock | $3,200,000 | 18% |
a. 19%
b. 22%
c. 28%
d. 14%
Answer
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Related questions
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Q:
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