Calculate Wiley's WACC.
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Wiley has a capital structure of 35 percent debt, 10 percent preferred stock and 55 percent common stock. The pre-tax cost of debt (K d ) is 14 percent; the preferred stock value is (K ps ) 12.3 percent; and common stock in retained earnings (K s ) is 10.4 percent. The firm has a tax bracket of 40 percent.
Calculate Wiley's WACC.
What inferences can you make about Wiley's knowing this information?
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Wiley has a capital structure of 35 percent debt, 10 percent preferred stock and 55 percent common stock. The pre-tax cost of debt (K d ) is 14 percent; the preferred stock value is (K ps ) 12.3 percent; and common stock in retained ...
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