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Weight of Debt 40.000% Weight of Common Stock 50.000% Assume all equity financing is from retained earnings, with no new equity being raised. Weight of
| Weight of Debt | 40.000% | |||||||||
| Weight of Common Stock | 50.000% | Assume all equity financing is from retained earnings, with no new equity being raised. | ||||||||
| Weight of Preferred Stock | Fill in the weight here. | |||||||||
| Cost of Debt | 3.000% | |||||||||
| Cost of Common Stock | 9.458% | Use the number found on the Cost of Equity spreadsheet here. | ||||||||
| Cost of Preferred Stock | 5.000% | |||||||||
| Firm's Tax Rate | 40.000% | |||||||||
| Firm's Cost of Capital | You can use an Excel formula or simply type in what you find with your calculator. This is the firm's WACC. | |||||||||
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
