ou 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 common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WACC

the weighted average cost of capital is 9.25%

Explanation:

The computation of the weighted average cost of capital is shown below;

= Cost of debt × weight of debt × (1 - tax rate) + cost of equity × weight of equity + cost of preferred stock × weight of preferred stock

= 35% × 6.50% × (1 - 0.40) + 11.25% × 55% + 6% × 10%

= 1.365% + 7.288% + 0.6%

= 9.25%

Hence, the weighted average cost of capital is 9.25%

The same would be considered and relevant

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

answer; descriptive statistics;