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A firm is financed with 30% debt, 60% common equity and 10% preferred equity. The before-tax cost of debt is 5%, the firms cost of common equity is 15%, and that of preferred equity is 10%. The marginal tax rate is 30%. What is the firms weighted average cost of capital? A. 10.05% B. 11.05% C. 12.5% D. None of the above

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