easy finance question

easy finance question

Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7).

       
Acme International Capital Sources     Required
      Return rates
Common Stock and Retained Earnings  $  400,000   8%
Preferred Stock  $  100,000   7%
Corporate Bonds  $  300,000   10%
       
Corporate tax rate 35%    
       


 

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