What is capital''s after-tax wacc

Reference no: EM13323926

Capital Co. has a capital structure, based on current market values, that consists of 44 percent debt, 11 percent preferred stock, and 45 percent common stock. If the returns required by investors are 9 percent, 13 percent, and 17 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.

Reference no: EM13323926

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