You were hired as a consultant to Kroncke Company,whose target capital structure is 40% debt,10% preferred,and 50% common equity.The after-tax cost of debt is 6.00%,the cost of preferred is 7.50%,and the cost of retained earnings is 13.25%.The firm will not be issuing any new stock.What is its WACC?

Question

Quizplus · Accepted Answer

The Answer of You were hired as a consultant to Kroncke Company,whose target capital structure is 40% debt,10% preferred,and 50% common equity.The after-tax cost of debt is 6.00%,the cost of preferred is 7.50%,and the cost of retained earnings is 13.25%.The firm will not be issuing any new stock.What is its WACC?

You Were Hired as a Consultant to Kroncke Company,whose Target