Given the information about Accidental Petroleum in the previous problem, calculate the company's weighted average cost of capital assuming that its new financing will consist of 30% debt, 60% equity, and 10% preferred stock. $\begin{array}{llll}&&&\text { Component }\
\text { Component } & \text { Weight } & \text { Cost } & \text { Cost } \
\hline\text { Debt (aftertax) } & .30 & .0474 & .0142 \
\text { Preferred stock } & .10 & .1095 & .0110 \
\text { Equity } & .60 & .1316 & .0790 \
&&&.1042
\end{array}$

Question

Given the information about Accidental Petroleum in the previous problem, calculate the company's weighted average cost of capital assuming that its new financing will consist of 30% debt, 60% equity, and 10% preferred stock. $\begin{array}{llll}&&&\text { Component }\
\text { Component } & \text { Weight } & \text { Cost } &  \text { Cost } \
\hline\text { Debt (aftertax) } & .30 & .0474 & .0142 \
\text { Preferred stock } & .10 & .1095 & .0110 \
\text { Equity } & .60 & .1316 & .0790 \
&&&.1042
\end{array}$

Quizplus · Accepted Answer

The Answer of Given the information about Accidental Petroleum in the previous problem, calculate the company's weighted average cost of capital assuming that its new financing will consist of 30% debt, 60% equity, and 10% preferred stock. $\begin{array}{llll}&&&\text { Component }\
\text { Component } & \text { Weight } & \text { Cost } &  \text { Cost } \
\hline\text { Debt (aftertax) } & .30 & .0474 & .0142 \
\text { Preferred stock } & .10 & .1095 & .0110 \
\text { Equity } & .60 & .1316 & .0790 \
&&&.1042
\end{array}$

Given the Information About Accidental Petroleum in the Previous Problem