Question
Telejack is trying to estimate their cost of capital. Their Preferred stock costs 9.4%. their After tax cost of debt is 5.6%, their Cost of
Telejack is trying to estimate their cost of capital. Their Preferred stock costs 9.4%. their After tax cost of debt is 5.6%, their Cost of equity is 10% and if they issue new stock it will cost 13.1%. Telejack wants 40% debt, 10% preferred and 50% from retained earnings in the capital structure. What is their WACC?
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
