Quincy Company is financed by $4 million in debt, $1 million in preferred stocks, and $5 million in common stocks. The p
Posted: Fri Jul 01, 2022 7:41 am
Quincy Company is financed by $4 million in debt, $1 million inpreferred stocks, and $5 million in common stocks. The pre-tax costof debt is 4%, the cost of preferred stock is 6%, and the cost ofequity is 14%. Calculate the weighted average cost of capital.Assume 21% tax rate.
a) 7.26%
b) 8.86%
c) 9.29%
d) 6.60%
a) 7.26%
b) 8.86%
c) 9.29%
d) 6.60%