Problem 13.11 Capital Co. has a capital structure, based on current market values, that consists of 50 percent debt, 10 percent preferred stock, and 40 percent common stock. If the returns required by investors are 8 percent, 10 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) After tax WACC = . Warning [removed] Don't show me this message again for the assignment Ok Cancel Link to Text By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. .

1. Problem 13.11
Capital Co. has a capital structure, based on current market
values, that consists of 50 percent debt, 10 percent preferred
stock, and 40 percent common stock. If the returns required by
investors are 8 percent, 10 percent, and 15 percent for the debt,
preferred stock, and common stock, respectively, what is
Capital’s after-tax WACC? Assume that the firm’s marginal tax
rate is 40 percent.
(Round intermediate calculations to 4 decimal places, e.g.
1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
After tax WACC
=
.
Warning
[removed] Don't show me this message again for the assignment
Ok
Cancel
Link to Text
By accessing this Question Assistance, you will learn while you
earn points based on the Point Potential Policy set by your
instructor.