Pfd Company has debt with a yield to maturity of 6.3%, a cost of equity of 15.1%, and a cost of preferred stock of 10.5%. The market values of its debt, preferred stock, and equity are $11.2 million, $3.2 million, and $14.3 million, respectively, and its tax rate is 35%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is %. (Round to two decimal places.)

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Pfd Company has debt with a yield to maturity of 6.3%, a cost of equity of 15.1%, and a cost of preferred stock of 10.5%. The market values of its debt, preferred stock,
and equity are $11.2 million, $3.2 million, and $14.3 million, respectively, and its tax rate is 35%. What is this firm's after-tax WACC?
Note: Assume that the firm will always be able to utilize its full interest tax shield.
Pfd's WACC is %. (Round to two decimal places.)
Transcribed Image Text:P 13-16 (similar to) Question Help Pfd Company has debt with a yield to maturity of 6.3%, a cost of equity of 15.1%, and a cost of preferred stock of 10.5%. The market values of its debt, preferred stock, and equity are $11.2 million, $3.2 million, and $14.3 million, respectively, and its tax rate is 35%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is %. (Round to two decimal places.)
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