All city inc is financed 40 with debt 10 with proffered, Financial Management

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All city inc is financed 40 with debt 10 with proffered

All city Inc. is financed 40% with debt, 10% with proffered stock, and 50% with common stock. its pretax cost of debt is 6%, its proffered stock pays an annual dividend of $2.50 and is priced at $30. it has an equity beta of 1.1. Assume the risk free rate is 2%, the market free premium is 7% and allcity's tax rate is 35%. What is its after tax WACC?

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Financial Management: All city inc is financed 40 with debt 10 with proffered

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