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The Tyler Oil Company's capital structure is as follows: Debt Preferred stock Common equity 45% 10 45 The aftertax cost of debt is 12 percent,
The Tyler Oil Company's capital structure is as follows: Debt Preferred stock Common equity 45% 10 45 The aftertax cost of debt is 12 percent, the cost of preferred stock is 15 percent, and the cost of common equity in the form of retained earnings) is 18 percent Calculate Tyler Oil Company's weighted average cost of capital in a manner similar to Table 11-1 (Round the final answers to 2 decimal places.) Weighted Cost Debt (3) Preferred stock (p) Common equity (ke) (retained earnings) Weighted average cost of capital (K)
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