1.AllCity, Inc., is financed 44% with? debt, 5% with preferred? stock, and 51% with common...
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1.AllCity, Inc., is financed 44% with? debt, 5% with preferred? stock, and 51% with common stock. Its cost of debt is 5.7%?, its preferred stock pays an annual dividend of $2.48 and is priced at
$26.It has an equity beta of 1.14.Assume the? risk-free rate is 1.8%?, the market risk premium is 7%and? AllCity's tax rate is 35%.
What is its? after-tax WACC?
2.Pfd Company has debt with a yield to maturity of 7.6%?, a cost of equity of 15.1%?, and a cost of preferred stock of 9.9%. The market values of its? debt, preferred? stock, and equity are $13.6
million, $3.4 ?million, and $13.1 ?million, respectively, and its tax rate is 40%. What is this? firm's after-tax? WACC?
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