Aaron PlanttI Customer Support I sign Home Grades Personaliz

Aaron PlanttI Customer Support I sign Home Grades Personalized Reviews DiscussionCourse Materials Final Exam-Chapters 7-11, 14, 16 IBack to Assigement Deadline Today at 09.00 PM Attempts Score: 4 23. The Cost of Capital: Weighted Average Cest of Capital The Cost of Capital: Weighted Average Cost of Capital The fem\'s target capital structure is the mx of dube, preferred stock, and common equity the fem plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the of these components, are used to cakculate the firm\'s weighted average cost of capital (WACc),Ithe m will not have to issue new common stock, then the cost of retained earnings is used in the fim\'s WACC calculation. f the 1rm will have to issue new common stock, the cost of mew common stook should be used in the firm\'s WACC calculation mapal tax rate...-e that the t scost or d trg,is7w, the frm, oste, prefe edstick 9% and the in est regnv s i aseola e ay era inser neunt, what-hemma weighted average cost of capital (WACC)ir t uses retained earnings as its source of common equity? Round your answer to 3 decimal places. Do not round Intermediate calculations anat il the frn\'s wepted average cog of capital (WACC)? has to issue new common stock, Round your answer to 3 decimal places. Do not round intermediate aiolators. Cepyright Notices ers of UsePrivacy Nortice Security Notice Accessibility

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Debt	40%	Preferred Stock	5%	Common Equity	55%
After Tax Cost Of debt = Cost of Debt * ( 1-Tax rate)	4.44%	Cost of Preferred Stock	6.90%	Cost of Retained Earnings or cost of Old Equity	11.40%
WACC = After Tax Cost of Debt * Debt Ratio + Cost of Preferred Stock * Preferred Stock ratio + Cost of Common Equity * Cost of Old Equity
WACC	8.391%
Debt	40%	Preferred Stock	5%	Common Equity	55%
After Tax Cost Of debt = Cost of Debt * ( 1-Tax rate)	4.44%	Cost of Preferred Stock	6.90%	Cost of Retained Earnings or cost of Old Equity	12.21%
WACC = After Tax Cost of Debt * Debt Ratio + Cost of Preferred Stock * Preferred Stock ratio + Cost of Common Equity * Cost of New Equity
WACC	8.837%