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I have the calculations figured, Can someone look at the below chart and compare the WACC and discuss the impact of the firm leverage on
I have the calculations figured, Can someone look at the below chart and compare the WACC and discuss the impact of the firm leverage on its WACC between A,B and C
A.. After tax cost of debt 0.042 Cost of preferred stock Cost of common stock 10.43% WACC 0.025
B. After tax cost of debt 0.045 Cost of preferred stock 0.0933 Cost of common stock 11.24% WACC 0.08
C After tax cost of debt 0.051 Cost of preferred stock 0.1048 Cost of common stock 12.05% WACC 0.081
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