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Weyland-Yutani Corporation has a cost of debt of 7.6%, a cost of equity of 14.3% and a cost of preferred stock of 8.5%. The firm
Weyland-Yutani Corporation has a cost of debt of 7.6%, a cost of equity of 14.3% and a cost of preferred stock of 8.5%. The firm has 220,000 shares of common stock selling for $27 a share and 25,000 shares of preferred stock which cost $41 per share. Weyland-Yutani also has a bond issue with a value of $550,000. The companys tax rate is 37%. What is the firms after-tax cost of debt? Question 11Answer a. 8.63% b. 4.79% c. 10.08% d. 7.40% e. 9.88%
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