Hey guys can you please help me solve this problem.
Calculate the Weighted Average Cost of Capital (WACC) for a company with the following capital structure (20 points)?
- 15,000,000 shares of common stock outstanding at current market price of $2.75/share
- 2,000,000 shares of preferred stock with par value of $10.00/share and paying an annual dividend of 8.5%
- Long-term debt of $45,000,000 with an interest rate of 7%
The combined federal and state tax rate is 38% and you can assume that equity investors in the company are looking to achieve the long-term stock market return of 12.5%

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