A company has 40 million in debt with an after-tax cost of


Question: A company has $40 million in debt with an after-tax cost of 4%. Its $10 million in preferred stock has a cost of 7% and its common stock and retained earnings of $50 million have a cost of 15%. What is the weighted average cost of capital?

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Finance Basics: A company has 40 million in debt with an after-tax cost of
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