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Q 13 Pfd Company has debt with a yield to maturity of 6.6%,...

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Finance

Q 13

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Pfd Company has debt with a yield to maturity of 6.6%, a cost of equity of 13.9%, and a cost of preferred stock of 8.7%. The market values of its debt, preferred stock, and equity are $9.6 million, $2.9 million, and $16.3 million, respectively, and its tax rate is 25%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is \%. (Round to two decimal places.)

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