Question
Pfd Company has debt with a yield to maturity of 6.1%, a cost of equity of 13.6%, and a cost of preferred stock of 9.6%.
Pfd Company has debt with a yield to maturity of 6.1%, a cost of equity of 13.6%, and a cost of preferred stock of 9.6%. The market values of its debt, preferred stock, and equity are $12.6 million, $2.9 million, and $15.9 million, respectively, and its tax rate is 40%.
What is this firm's after-tax WACC?
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick
3rd Edition
0470497521, 9780470497524
