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Pfd Company has debt with a yield to maturity of 7.2%, a cost of equity of 13.4%, and a cost of preferred stock of 9.5%.
Pfd Company has debt with a yield to maturity of 7.2%, a cost of equity of 13.4%, and a cost of preferred stock of 9.5%. The market values of its debt, preferred stock, and equity are $13.1 million, $3.1 million, and $16.7 million, respectively, and its tax rate is 22%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is%. (Round to two decimal places.)
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