Afirms target capital structure consists of 40 debt 5 , Ask an Expert

Economics

A firm's target capital structure consists of 40 % debt, 5 % preferred stock, and 55 % common equity. The cost of preferred stock is 11.26%, the firm’s cost of debt is 10% and the cost of equity is 14 %. What is the firm's weighted average cost of capital if the company tax rate is 35%?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91226408

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