The after-tax cost of debt

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You were hired as a consultant to Keys Company, and you were provided with the following data: Target capital structure: 30% debt, 15% preferred, and 55% common equity. The after-tax cost of debt is 4.50%, the cost of preferred is 8.00%, and the cost of retained earnings is 12.00%. The firm will not be issuing any new stock. What is the firm’s WACC?

Reference no: EM13924691

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