Question
Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportion: debt, 55%; preferred stock, 10%;
Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportion: debt, 55%; preferred stock, 10%; and common stock, 35%. If the cost of debt is 6.7%, preferred stock costs 9.2%, and common stock costs 10.6%, what is Oxy's weighted average cost of capital (WACC)?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
