Question
A company has a target capital structure of 55% common stock, 10% preferred stock, and 35% debt. Its cost of equity is 13%, the cost
A company has a target capital structure of 55% common stock, 10% preferred stock, and 35% debt. Its cost of equity is 13%, the cost of preferred stock is 7%, and the cost of debt is 8%. The relevant tax rate is 30%. What is the company's Weighted Average Cost of Capital?
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
