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AllCity, Inc., is financed 39% with debt, 9%with preferred stock, and 52% with common stock. It's cost of debt is 5.8%, it's preferred stock pays
AllCity, Inc., is financed 39% with debt, 9%with preferred stock, and 52% with common stock. It's cost of debt is 5.8%, it's preferred stock pays an annual dividend of $2.49 and its prices at $34. It has an equity beta of 1.1. Assume the risk-free rate is 1.7%, the market risk premium is 7% and AllCity's tax rate is 35%. What is its after-tax WACC?
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
