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The Tyler Oil Company s capital structure is as follows: Debt 3 0 % Preferred stock 1 5 Common equity 5 5 The aftertax cost
The Tyler Oil Companys capital structure is as follows:
Debt
Preferred stock
Common equity
The aftertax cost of debt is percent; the cost of preferred stock is percent; and the cost of common equity in the form of retained earnings is percent.
Calculate Tyler Oil Companys weighted average cost of capital in a manner similar to Table Round the final answers to decimal places.
Weighted Cost
Debt Kd
Preferred stock Kp
Common equity Keretained earnings
Weighted average cost of capital Ka
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