Business, 28.05.2021 22:20 kristadwsn

The company cost of capital for a firm with a 60/30/10 debt/common/preferred split, 8% cost of debt, 15% cost of equity, preferred stock sells for $50 today, and will pay a $6 dividend in year 1. Assume a 35% tax rate, solve for WACC. a. 7.02%
b. 8.82%
c. 10.50%
d. 13.62%

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The company cost of capital for a firm with a 60/30/10 debt/common/preferred split, 8% cost of debt,...