Firm after-tax? wacc-pfd company

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Pfd Company has debt with a yield to maturity of 8.3%?, a cost of equity of 15.3%?, and a cost of preferred stock of 10.1%. The market values of its? debt, preferred? stock, and equity are $10.9 ?million, $3.4 ?million, and $16.2 ?million, respectively, and its tax rate is 40%. What is this? firm's after-tax? WACC?

?Note: Assume that the firm will always be able to utilize its full interest tax shield.

Reference no: EM132654702

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