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Business, 04.07.2020 14:01 miya2579

AllCity, Inc., is financed 36 % with debt, 14 % with preferred stock, and 50 % with common stock. Its cost of debt is 5.7 %, its preferred stock pays an annual dividend of $ 2.45 and is priced at $ 29. It has an equity beta of 1.13. Assume the risk-free rate is 2.4 %, the market risk premium is 7.3 % and AllCity's tax rate is 35 %. What is its after-tax WACC? g

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AllCity, Inc., is financed 36 % with debt, 14 % with preferred stock, and 50 % with common stock. It...
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