Question
Preston Industries has a WACC of 12.48 percent. The capital structure consists of 61.4 percent equity and 36.4 percent debt. The aftertax cost of debt
Preston Industries has a WACC of 12.48 percent. The capital structure consists of 61.4 percent equity and 36.4 percent debt. The aftertax cost of debt is 6.9 percent and the cost of equity is 15.60 percent. What is the cost of preferred stock?
A 19.93 percent
B 17.73 percent
C 21.83 percent
D 20.63 percent
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Financial Times Handbook Of Corporate Finance A Business Companion To Financial Markets Decisions And Techniques
Authors: Glen Arnold
2nd Edition
0273726560, 978-0273726562
