Question
Preston Industries has a WACC of 11.78 percent. The capital structure consists of 60.7 percent equity and 35.7 percent debt. The aftertax cost of debt
Preston Industries has a WACC of 11.78 percent. The capital structure consists of 60.7 percent equity and 35.7 percent debt. The aftertax cost of debt is 6.2 percent and the cost of equity is 14.90 percent. What is the cost of preferred stock?
16.71 percent
18.61 percent
14.51 percent
17.41 percent
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
