Question
What is required rate of return of the WACC you calculated below: Cost (After Tax)WeightsWeighted Cost Preferred stock8.40%10%0.84% Common equity10.60%40%4.24% Debt 2.92% 50%1.46% _____________ weighted
What is required rate of return of the WACC you calculated below:
Cost (After Tax)WeightsWeighted Cost
Preferred stock8.40%10%0.84%
Common equity10.60%40%4.24%
Debt 2.92% 50%1.46%
_____________
weighted average cost of capital6.55 %
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
