What is? after-tax wacc

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Problem 1: llCity, Inc., is financed 45% with? debt, 5% with preferred? stock, and 50% with common stock. Its cost of debt is 6.5%?, its preferred stock pays an annual dividend of $2.46 and is priced at $35. It has an equity beta of 1.16. Assume the? risk-free rate is 1.6%?, the market risk premium is 6.5% 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.

Reference no: EM132938296

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