Question
You were hired as a consultant to a company, whose target capital structure is 40% dept, 15% preffered, and 45% common equity. the after-tax cost
You were hired as a consultant to a company, whose target capital structure is 40% dept, 15% preffered, and 45% common equity. the after-tax cost of dept is 6.00%, the cost of preferred is 7.50%, and the cost of common using retained earnings is 12.75%. The firm will not be issuing any new stock. What is its WAAC?
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
