Question
PFD cmpany has a debt with a yeild to maturity of 7%, a cost of equity of 13%, and a cost of preferred stock of
PFD cmpany has a debt with a yeild to maturity of 7%, a cost of equity of 13%, and a cost of preferred stock of 9%. The market values of its debt, preferred stock and equity are $10 million, $3 million, $15 million, respectively, and its tax rate is 40%. What is this company's WACC?
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Investments
Authors: Zvi Bodie, Alan J. Marcus, Alex Kane
6th Edition
0072861789, 9780072861785
