What is quigleys wacc

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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 11.25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC?

a. 8.82%
b. 9.17%
c. 8.48%
d. 8.15%
e. 9.54%

 

Reference no: EM13286272

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