What is company weighted average cost of capital

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Reference no: EM131566913

AMC Inc's capital structure is as follows:

Debt......65%

Preferred stock....5%

Common Equity ....30%

Becuase they have a high debt ratio, the after-tax cost of debt is 9.8%, the cost of preferred stock is 12% and the cost of common equity (in the form of retained earnings) is 15%. What is the company's weighted average cost of capital?

Reference no: EM131566913

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