Question
AllCity, Inc., is financed 38 % with debt, 7 % with preferred stock, and 55 % with common stock. Its cost of debt is 6.2
AllCity, Inc., is financed 38 % with debt, 7 % with preferred stock, and 55 % with common stock. Its cost of debt is 6.2 %. its preferred stock pays an annual dividend of $ 2.45 and is priced at $ 34. It has an equity beta of 1.17. Assume the risk-free rate is 1.7 % the market risk premium is 6.9 % and AllCity's tax rate is 35 %. What is its after-tax WACC?
The WACC is (%)
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Financial Accounting Second Custom Edition For The University Of Central Florida
Authors: Walter T. Jr, Horngren Harrison
2nd Custom Edition
0536986002, 978-0536986009
