All city inc is financed 35 with debt 10 with preferred, Financial Management

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All city inc is financed 35 with debt 10 with preferred

All City Inc. is financed 35% with debt, 10% with preferred stock, and 55% with common stock. Its pre-tax cost of debt is 6%; its preferred stock pays an annual dividend of $2.25 and is priced at $32. It has an equity beta of 1.4. Assume the risk-free rate is 2%, the market risk premium is 6%, and All City's tax rate is 35%. What is its after-tax WACC?

What is its after-tax WACC? r_wacc = (Round to five decimal places.)

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Financial Management: All city inc is financed 35 with debt 10 with preferred

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Financial Management: All city inc is financed 35 with debt 10 with preferred

Reference No:- TGS02318823

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