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Question 5 (8.33 points) You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt,
Posted: Sun Jul 03, 2022 12:57 pm
by answerhappygod
- Question 5 8 33 Points You Were Hired As A Consultant To Quigley Company Whose Target Capital Structure Is 35 Debt 1 (35.49 KiB) Viewed 13 times
Question 5 (8.33 points) You were hired as a consultant to Quigley
Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 14.75%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations. 10.08% 8.87% 8.36% 9.17% 12.19%