Solution-Cost of common from retained earnings

Cost of common from retained earnings

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Reference no: EM131472931

You were hired as a consultant to XYZ Company, whose target capital structure is 35% debt, 9% preferred, and 56% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 4.75%, the cost of common from retained earnings is 13.10%, and the tax rate is 27.00%. The firm will not be issuing any new common stock. What is XYZ's WACC?

Reference no: EM131472931

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Cost of common from retained earnings

Reference no: EM131472931

Reference no: EM131472931

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