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Suppose XYZ Inc.'s target capital structure is as follows: weight of debt = 45%, weight of preferred shares = 5%, and weight of common equity
Suppose XYZ Inc.'s target capital structure is as follows: weight of debt = 45%, weight of preferred shares = 5%, and weight of common equity = 50%. Its before-tax cost of debt is 8%, its cost of equity is 13.3%, its cost of preferred stock is 8.4%, and its tax rate is 40%. Calculate XYZ's WACC. (Do not round intermediate calculations and round your answer to 2 decimal places. Input percentage points only, no % sign, e.g., 32.16)
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