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KIO Inc. has a capital structure that consists of 40% debt, 15% preferred, and 45% common equity. The company's after-tax cost of debt (R D
KIO Inc. has a capital structure that consists of 40% debt, 15% preferred, and 45% common equity. The company's after-tax cost of debt (RD) is 6.00%, the cost of preferred stock (RP) is 7.50%, and the cost of common equity (RE) is 13.00%. What is the company's wighted average cost of capital (WACC)?
| 1. | 9.19% | |
| 2. | 7.22% | |
| 3. | 11.44% | |
| 4. | 10.22% | |
| 5. | 9.38% |
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