What is xyz weighted average cost of capital

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XYZ Inc. has a current capital structure that is 38% equity, 33% debt, and 34% preferred stock. XYZ is considering a capital budgeting project. XYZ has estimated the following.

After-tax cost of debt: 3.0%

Cost of preferred stock: 6.0%

Cost of equity: 9.0%

What is XYZ's weighted average cost of capital (WACC) for this project.

Reference no: EM131833555

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