Business
Business, 14.07.2020 14:01, jsbdbdkdkkd5104

AllCity, Inc., is financed 44 % with debt, 7 % with preferred stock, and 49 % with common stock. Its cost of debt is 5.6 %, its preferred stock pays an annual dividend of $ 2.46 and is priced at $ 32. It has an equity beta of 1.14. Assume the risk-free rate is 1.7 %, the market risk premium is 7.1 % and AllCity's tax rate is 35 %. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. g

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AllCity, Inc., is financed 44 % with debt, 7 % with preferred stock, and 49 % with common stock. Its...

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