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The Tyler Oil Companys capital structure is as follows: Debt 15 % Preferred stock 20 Common equity 65 The aftertax cost of debt is 5
The Tyler Oil Companys capital structure is as follows: Debt 15 % Preferred stock 20 Common equity 65 The aftertax cost of debt is 5 percent; the cost of preferred stock is 8 percent; and the cost of common equity (in the form of retained earnings) is 11 percent. Calculate Tyler Oil Companys weighted average cost of capital in a manner similar to Table 11-1. (Round the final answers to 2 decimal places.) Weighted Cost Debt (Kd) % Preferred stock (Kp) Common equity (Ke) (retained earnings) Weighted average cost of capital (Ka) %
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