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Question
For a typical corporation, which of the following capital structures will result in the lowest weighted average cost of capital?A) 40% debt, 20% preferred stock, 40% common equity
B) 50% debt, 10% preferred stock, 40% common equity
C) 60% debt, 10% preferred stock, 30% common equity
D) 60% debt, 15% preferred stock, 25% common equity
Answer
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