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Minsk Industries' Capital Structure Features 63% Equity, 7% Preferred Stock

Question 124

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Minsk Industries' capital structure features 63% equity, 7% preferred stock, and 30% debt.If the before-tax component costs of equity, preferred stock and debt are 11.60%, 9.5% and 7%, respectively, what is Minsk's WACC if the firm faces an average tax rate of 34%?

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