Kss corporation uses 20 debt 10 preferred stock and 70, Ask an Expert

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KSS corporation uses 20% debt, 10% preferred stock, and 70% equity to finance new capital expenditures. The after tax cost of debt is 6%, the cost of preferred stock is 9%, the cost of retained earnings is 12% and the cost of a new stock issue is 14%. What is the WACC if a new stock issue is needed?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92807080

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