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3. Westbrook's Painting Co.s target capital structure is 30% debt, 10% preferred, and 60% common equity. The interest rate on new debt is 6.50%, the
3. Westbrook's Painting Co.s target capital structure is 30% debt, 10% preferred, and 60% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 21%. The firm will not be issuing any new common stock. What is Westbrook's WACC?
(I feel like the number I'm getting is high)
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