Problem 10 Intro Idaho Engineering Inc. has a target capital structure of 27% debt, 10%...
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Problem 10 Intro Idaho Engineering Inc. has a target capital structure of 27% debt, 10% preferred stock and 63% common stock. The interest rate on new debt is 5.8%, the yield on preferred stock is 8% and the cost of retained earnings is 12%. The firm will not be issuing any new stock, and the tax rate is 32% Part 1 18 Attempt 1/10 for 10 pts. What is the company's pre-tax weighted average cost of capital? 3+ decimals Submit Part 2 Le Attempt 1/10 for 10 pts. What is the company's after-tax weighted average cost of capital? 3+ decimals Submit
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