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Cost of retained earnings

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Reference no: EM131429033

Weir Inc. has a target capital structure of 40% debt, 20% preferred, and 40% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 9.6%, and the tax rate is 40%. The WACC for Weir is:

  • 6.81%
  • 6.62%
  • 6.77%
  • 6.99%
  • 6.60%

Reference no: EM131429033

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Cost of retained earnings : Weir Inc. has a target capital structure of 40% debt, 20% preferred, and 40% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 9.6%, and the tax rate is 40%. The WACC for..
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