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    What is Quigley's WACC?

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    11. You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 12.00%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC?

    9.34%
    9.51%
    8.99%
    7.62%
    8.57%

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    https://brainmass.com/business/weighted-average-cost-of-capital/what-is-quigley-s-wacc-310639

    Solution Summary

    This solution provides a very brief calculation of WACC applied to the problem of the Quigley Company.

    $2.19