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Trillity Inc., is financed 30% with debt, 20% with preferred stock, and 50% with common stock. Its cost of debt is 7%, its preferred stock
Trillity Inc., is financed 30% with debt, 20% with preferred stock, and 50% with common stock. Its cost of debt is 7%, its preferred stock pays an annual dividend of $1.2 and is priced at $20. It has an equity beta of 1.2. Assume the risk-free rate is 3%, the market risk premium is 7% and Trillity's tax rate is 40%. What is its after-tax WACC?
Trillity Inc., is financed 30% with debt, 20% with preferred stock, and 50% with common stock. Its cost of debt is 7%, its preferred stock pays an annual dividend of $1.2 and is priced at $20. It has an equity beta of 1.2. Assume the risk-free rate is 3%, the market risk premium is 7% and Trillity's tax rate is 40%. What is its after-tax WACC?
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Behavioral Finance And Capital Markets
Authors: A. Szyszka
5th Edition
1137338741, 9781137338747
