What is capitals after-tax wacc

Reference no: EM13255714

Capital Co. has a capital structure, based on current market values, that consists of 24 percent debt, 17 percent preferred stock, and 59 percent common stock. If the returns required by investors are 10 percent, 11 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent.

Reference no: EM13255714

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