A firm cost of debt = 6%, cost of Preferred stock = 5%, and required common...

A firm cost of debt = 6%, cost of Preferred stock = 5%, and required common stock return = 12%. if the capital structure = 30% debt, 5% preferred, and 65% common stock, calculate the WACC:

	1.	8.55%
	2.	9.63%
	3.	10.21%
	4.	none of the answers are correct

Expert Solution

jeff jeffy answered 2 years ago

Capital component weights, cost of debt, cost of preferred stock, and cost of common equity.

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How to find the cost of debt, cost of preferred stock, cost of common equity, capital...

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