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Pfd Company has debt with a yield to maturity of 7.0%, a cost of equity of 13.0, and a cost of preferred stock of9.0% .

Pfd Company has debt with a yield to maturity of 7.0%, a cost of equity of 13.0, and a cost of preferred stock of9.0% . The market values of its debt, preferred stock, and equity are $10.0 million, million, and $15.0 million, respectively, and its tax rate is 40% . What is this firm's WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Question content area bottom Part 1 Pfd's WACC is

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