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You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 48% debt, 11% preferred, and
You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 48% debt, 11% preferred, and 41% common equity. The after-tax cost of debt is 4.3%, the cost of preferred is 7.9%, and the cost of retained earnings is 10.4%. The firm will not be issuing any new stock. What is the firm's WACC?
O 7.20%
7.80%
7.60%
8.00%
7.40%
You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 48% debt, 11% preferred, and 41% common equity. The after-tax cost of debt is 4.3%, the cost of preferred is 7.9%, and the cost of retained earnings is 10.4%. The firm will not be issuing any new stock. What is the firm's WACC?
O 7.20%
7.80%
7.60%
8.00%
7.40%
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