What is quigley wacc

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Problem 1: You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 10.50%, and the tax rate is 25%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations.

Option 1: 6.11%

Option 2: 9.37%

Option 3: 6.97%

Option 4: 8.08%

Option 5: 6.73%

Reference no: EM132761842

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