Debt 55 preferred stock 10 and common stock 35 if the cost


Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportions: debt, 55%; preferred stock, 10%; and common stock, 35%. If the cost of debt is 6.7%, preferred stock costs 9.2%, and common stock costs 10.6%, what is Oxy's weighted average cost of capital (WACC)?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Debt 55 preferred stock 10 and common stock 35 if the cost
Reference No:- TGS01485341

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)