(Answered) Allcity inc is financed 45 with debt 5 with preferred stock

Economics

AllCity, Inc., is financed 45% with? debt, 5% with preferred? stock, and 50% with common stock. Its cost of debt is 6.3%?, its preferred stock pays an annual dividend of $2.52 and is priced at $33. It has an equity beta of 1.11. Assume the? risk-free rate is 1.6%?, the market risk premium is 7% and? AllCity's tax rate is 35%.

What is its? after-tax WACC?

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Business Economics, Economics

Category:- Business Economics
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