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The Tyler Oil Companys capital structure is as follows: Debt. 15% Preferred stock. 15 Common Equity.. 50 The aftertax cost of debt is 7 percent;
| The Tyler Oil Companys capital structure is as follows: | |||||||
| Debt. | 15% | ||||||
| Preferred stock. | 15 | ||||||
| Common Equity.. | 50 | ||||||
| The aftertax cost of debt is 7 percent; the cost of preferred stock is 10 percent; and the cost of com- mon equity (in the form of retained earnings) is 13 percent. | |||||||
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
