Pfd Company has debt with a yield to maturity of 6.2%, a cost of equity of 14.4%, and a cost of preferred stock of 9.9%. The market values of its debt, preferred stock, and equity are $11.6 million, $3.4 million, and $14.2 million, respectively, and its tax rate is 38%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pid's WACC is%. (Round to two decimal places.)

Pfd Company has debt with a yield to maturity of 6.2%, a cost of equity of 14.4%, and a cost of preferred stock of 9.9%. The market values of its debt, preferred stock, and equity are $11.6 million, $3.4 million, and $14.2 million, respectively, and its tax rate is 38%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pid's WACC is%. (Round to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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