You were hired as a consultant to Quigley Company whose targ

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 14.75%, and the tax rate is 40%. The firm will not be issuing any new stock, what is Quigley\'s WACC? Round final answer to two decimal places. Do not round your intermediate calculations.

Answer : 10.08%

=> WACC = Share of debt * cost of debt *tax effect + share of PS * cost of PS + share of Eq * cost of equity

= 0.35 * 0.065 * (1 - 0.4) + 0.10 * 0.06 + 0.55 * 0.1475 = 10.08%

You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new d

You were hired as a consultant to Quigley Company whose targ

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