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We need to compute WACC to determine the required rate of return
= Cost of debt X weight of debt + cost of Preferred X weight + cost of equity X weight
= 10%(1-40%) X 30% + 11% X 20% +16% X 50%
= 1.8 + 2.2 + 8
= 12% Choice b
I need help understanding a company's sales statement.