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Business, 22.04.2020 02:54 jamesgraham577

Pfd Company has debt with a yield to maturity of 7.1 %, a cost of equity of 15.4 %, and a cost of preferred stock of 8.9 %. The market values of its debt, preferred stock, and equity are $ 9.9 million, $ 2.9 million, and $ 13.9 million, respectively, and its tax rate is 40 %. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield.

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Pfd Company has debt with a yield to maturity of 7.1 %, a cost of equity of 15.4 %, and a cost of pr...
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