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easy please help immediately thank you 11. American Airlines has the following capital structure: Dept $40,000,000 Preferred Stock $10,000,000 Common Stock $50,000,000 Additional info: Yield
easy please help immediately thank you
11. American Airlines has the following capital structure: Dept $40,000,000 Preferred Stock $10,000,000 Common Stock $50,000,000 Additional info: Yield to maturity (bonds) Price of preferred stock Price of common stock Preferred dividend Common dividend Flotation cost, common Growth rate of dividends $50 $42 $6 $2 $2 5% 10% The firm's tax rate is 25%. Compute the firm's weighted average cost of capital WACC. TO HELP: First compute weights for debt, preferred stock, and common stock in the capital structure. Then compute their respective component costs. Then finally compute the WACC Step by Step Solution
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