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A firm with a 30% tax rate has the following effective annual cost rates: before-tax cost of debt = 7.45% cost of preferred stock =
A firm with a 30% tax rate has the following effective annual cost rates:
- before-tax cost of debt = 7.45%
- cost of preferred stock = 8.4%
- cost of equity = 14.4%
Further the firm's capital structure has the following market value weights:
- debt = 20%
- preferred = 10%
- equity = 70%
What is the firms WACC?
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
