Smith Company

by | Jul 27, 2021 | Homework Help

You work for Smith Company as a consultant. Kroncke target capital structure is 30% debt, 20% preferred, and 50% common equity. The after-tax cost of debt is 8%, the cost of preferred is 6.5%, and the cost of retained earnings is 13.25%. the firm will not be issuing any new stock. What is its WACC? (Points: 10)10.07%10.37%9.48%10.68%10.325% StockDebtPreferredStockEquity CapitalStructure30.0020.0050.00100.00 share8% WC 6.50%13.25% 1.36.62510.325 2.4

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