Question
XYZ Companys target capital structure is 40% debt and 60% common equity. The XYZ doesnt carry any preferred stocks. Theafter-tax cost of debt is 6.00%
XYZ Companys target capital structure is 40% debt and 60% common equity. The XYZ doesnt carry any preferred stocks. Theafter-tax cost of debt is 6.00% and the cost of retained earnings is 10.25%. The cost of ne issuing stocks is 12%. XYZ currently has retained earning of 50,000 and needs an additional capital of $100,000. To maintain the same capital structure, What is its WACC?
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Handbook Of Financial Planning And Control
Authors: Robert P. Greenwood
3rd Edition
0566083728, 978-0566083723
