Question
Lauren’s Laundry Service has the following amounts of equity and debt. The CFO has computed the corresponding...
Lauren’s Laundry Service has the following amounts of equity and debt. The CFO has computed the corresponding rates on equity, preferred and debt. The tax rate is 35%. What is Lauren’s weighted average cost of capital?
Amount Rate
Common Stock 200,000 12%
Preferred Stock 65,000 8%
Debt 135,000 10%
Lauren’s Laundry Service WACC ______________________
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