Weighted Average Cost of Capital
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In a company with the following known information what is the Weighted Average Calculation of Capital (WACC): After tax cost of debt 6%, cost of preferred stock including flotation cost is 10%, cost of equity including flotation cost is 14%, and the company has a target capital structure of 50% equity, 20% preferred stock, and 30% debt. What is the company WACC?
a) 12%,
b) 10%,
c) 11.2%,
d) 9.4%,
e) 10.8%.
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Calculates Weighted Average Cost of Capital.
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In a company with the following known information what is the Weighted Average Calculation of Capital (WACC): After tax cost of debt 6%, cost of preferred stock ...
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