AMC Inc's capital structure is as follows: Debt......65% Preferred stock....5% Common Equity ....30% Becuase they...
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Accounting
AMC Inc's capital structure is as follows:
Debt......65%
Preferred stock....5%
Common Equity ....30%
Becuase they have a high debt ratio, the after-tax cost of debt is 9.8%, the cost of preferred stock is 12% and the cost of common equity (in the form of retained earnings) is 15%. What is the company's weighted average cost of capital?
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