MicroTech Corporation is subject to a 30% income tax rate. Given the following information about the firm's capital structure, calculate the corporation's weighted-average cost of capital (WACC): (Do not round intermediate calculations. Round your answers to 2 decimal places. (i.e. 0.1234 = 12.34%).)
Source of Funds Market Value After-Tax Rate or Expected ReturnLong-term debt $70million 10%Preferred stock 100million 12 Common stock 90million 15
Long-term debt:
Preferred stock:
Common stock:
Long-term debt: 2.69%
Preferred stock: 4.62%
Common stock: 5.19%
Total: 12.50%
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How do channel members add value to a distribution channel?
What will be an ideal response?