Xyzs weighted average cost of capital

Reference no: EM133264415

XYZ Inc. has a current capital structure that is 70% equity, 20% debt, and 10% preferred stock. XYZ is considering a capital budgeting project. XYZ has estimated the following:

After-tax cost of debt: 7.0%
Cost of preferred stock: 8.0%
Cost of equity: 15.0%
Which of the following is XYZ's weighted average cost of capital (WACC) for this project?

Reference no: EM133264415

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