Question
A firm has determined its target capital structure and it after-tax cost for each source of capital. What is the firm's weighted average cost of
A firm has determined its target capital structure and it after-tax cost for each source of capital. What is the firm's weighted average cost of capital (WACC)? (Enter your answers as a percentge rounded to 2 decimal places)
| Source of Capital | Proportion | Cost |
| Long-term Debt (after taxes) | 30% | 6% |
| Preferred Stock | 10% | 8% |
| Common Stock | 60% | 13%
|
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
