Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7).
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Acme International Capital Sources
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|
Required
Return rates
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|
Common Stock and Retained Earnings
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$ 400,000
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8%
|
|
Preferred Stock
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S 100,000
|
70/0
|
|
Corporate Bonds
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S 300,000
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10%
|
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Corporate tax rate
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35%
|
|