Question
AllCity Inc is financed 37% with debt, 7% with preferred stock, and 56% with common stock. Its cost of debt is 6.1% its prefferred stock
AllCity Inc is financed 37% with debt, 7% with preferred stock, and 56% with common stock. Its cost of debt is 6.1% its prefferred stock pays an annual dividend of $2.45 and is priced at $31. it has ane quity beta of 1.2 Assume the risk free rate is 1.8% the market risk premium is 6.6% and AllCity tax rate is 35%. What is its after tax WACC?
The WACC______% (Round to two decimals)
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
