Calculate tyler oil company weighted average cost of capital

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Reference no: EM132763223

The Tyler Oil Company's capital structure is as follows:

Debt 35%

Preferred stock 15

Common equity 50

The aftertax cost of debt is 7 percent; the cost of preferred stock is 10 percent; and the cost of common equity (in the form of retained earnings) is 13 percent.

Problem 1: Calculate Tyler Oil Company's weighted average cost of capital

Reference no: EM132763223

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