Preston Industries has a WACC of 11 18 percent The capital structure consists of 60 1 percent equity and 35 1 percent debt The after tax cost of debt is 5 6 percent and the cost of equity is 14 30 percent What is the cost of preferred stock ...

Equity portion in capital structure 601 Debt portion in cap ...

Preston Industries has a WACC of 11.18 percent. The capital structure consists of 60.1 percent equity and

Question:

Preston Industries has a WACC of 11.18 percent. The consists of 60.1 percent equity and 35.1 percent debt. The after-tax is 5.6 percent and the is 14.30 percent. What is the cost of preferred stock?
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...