Question regarding the cost of capital


The target capital structure for Jowers Manufacturing is 49% common stock, 10% preferred stock, and 41% debt. If the cost of common equity for the firm is 20.7%, the cost of preferred stock is 11.6%, and the before tax cost of debt is 10.8% what is Jowers' cost of capital? The firms' tax rate is 34%.

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Finance Basics: Question regarding the cost of capital
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