What is wildhorse after-tax wacc

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Problem 1: Wildhorse Co. has a capital structure, based on current market values, that consists of 35 percent debt, 8 percent preferred stock, and 57 percent common stock. If the returns required by investors are 12 percent, 12 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Wildhorse's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent. (Round final answer to 2 decimal places, e.g. 15.25%.

Reference no: EM132930185

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