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E. Role to privilege
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B. 10.06%
C. none of these answers
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E. 11.95%
F. 14.39%
G. 12.19%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To get the WACC in this case, you need to have information on the cost of preferred stock. This is not necessarily equal to the coupon rate on the preferred equity. Rather, it is the discount rate that equates the present value of the perpetual payments on the preferred equity to its current price. Without the price information, you cannot get the cost of preferred equity and hence, WACC cannot be calculated.
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