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  • Oct 22, 2012, 09:41 AM
    Carlaedw
    free finance homework help
    What is the WACC for this equation: Debt: 48%, Preferred Stock: 10%, Common Stock 42%, Cost before tax cost of financing is 7.1%, Cost of preferred stock is 9.2%, and Cost of Common stock is 17.3%.

    Debt= 48% Tax rate cost of debt = 7.1%X(1-.035)Preferred Stock= 10% Cost of Pref. Stock = 9.2%
    Common Equity (stock)= 42% Cost of Comm Stock = 17.3%

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