Pfd Company has debt with a yield to maturity of 7.9%, a cost of equity...
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Finance
Pfd Company has debt with a yield to maturity of 7.9%, a cost of equity of 13.2%, and a cost of preferred stock of 8.9%. The market values of its debt, preferredstock, and equity are $14.7 million, $3.3 million, and $16.4 million, respectively, and its tax rate is 40%.
A.
0.082
B.
0.102
C.
0.092
D.
0.105
What is this firm's after-tax WACC?
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