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Perry Corp has a capital structure with of 30% debt, 10% preferred stock and 60% common stock. It's YTM (Rd) on debt is 10% and tax rate (T) is 40%.

Perry Corp has a capital structure with of 30% debt, 10% preferred stock and 60% common stock. It’s YTM (Rd) on debt is 10% and tax rate (T) is 40%. Preferred stock has a dividend (Dp) of $10 and Price (Pp) of $125. Common stock has a cost from retained earnings (Rs) of 15%. Calculate its WACC.

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perry.doc

Perry Corp has a capital structure with of 30% debt, 10% preferred stock and 60% common
stock. It’s YTM (Rd) on debt is 10% and tax rate (T) is 40%. Preferred stock has a dividend (Dp)
of $10 and...

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