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A firm has the following capital structure: The corporate tax rate is 21 percent. Determine the after tax weighted average cost of capital for the

A firm has the following capital structure:

The corporate tax rate is 21 percent. Determine the after tax weighted average cost of capital for the firm.

Tax Rate = 0.21

Type Amount Return Mortgages (debt) 25,000,000 0.05 Bonds 350,000,000 0.08 Common Stock 175,000,000 0.1 Preferred Stock 50,000,000 0.08 Retained Earnings120,000,0000.12

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