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Tile World Ltd. is a tile company and has 20,000 shares of common stock outstanding at...

Tile World Ltd. is a tile company and has 20,000 shares of common stock outstanding at a market price of $29.50 a share, 6,500 shares of preferred stock outstanding at $55 a share, and 600 bonds outstanding that are selling for 85 percent of their $1,000 face value. The firm's pre-tax cost of debt is 8.9 percent. The cost of eqity is 14.7 percent and the cost of preferred is 8.8 percent. What is the firm's weighted average cost of capital if the tax rate is 35 percent?

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jeff jeffy answered 2 years ago
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