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Cream and Crimson Foods has a target capital structure of calling for 40.00 percent debt, 5.00...

Cream and Crimson Foods has a target capital structure of calling for 40.00 percent debt, 5.00 percent preferred stock, and 55.00 percent common equity (retained earnings plus common stock). Its before-tax cost of debt is 10.00 percent. The tax rate is 40.00%. Its cost of preferred stock is 10.40%. Its cost of common equity is 13.75%.

Find the WACC for Cream and Crimson Foods?

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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