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be clear please All City, Inc., is financed 37% with debt, 7% with preferred stock, and 56% with common stock. Its pretax cost of debt
be clear please
All City, Inc., is financed 37% with debt, 7% with preferred stock, and 56% with common stock. Its pretax cost of debt is 6.5%, its preferred stock pays an annual dividend of $2.51 and is priced at $35. It has an equity beta of 1.13. Assume the risk-free rate is 1.7%, the market risk premium is 7.2% and AllCity's tax rate is 25%. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield Step by Step Solution
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