13.11 Capital Co. has a capital structure, based on current market values, that consists of 26 percent
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Question:
Capital Co. has a capital structure, based on current market values, that consists of 26 percent debt, 14 percent preferred stock, and 60 percent common stock. If the returns required by investors are 8 percent, 10 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capitals after-tax WACC? Assume that the firms marginal tax rate is 40 percent.(Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
After tax WACC: ______%
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