XYZ Company has an existing capital structure mix of Debt 30%, preferred stock 30% and Common Stock 40%. If the weighted average cost of capital is 9.10 % and the cost of debt is 5 % and the cost of preffered stock is 10 %.Find the cost of the common stock. Select one: a. 14.04 % b. None of these c. 11.50 % d. 12.25 %

XYZ Company has an existing capital structure mix of Debt 30%, preferred stock 30% and Common Stock 40%. If the weighted average cost of capital is 9.10 % and the cost of debt is 5 % and the cost of preffered stock is 10 %.Find the cost of the common stock. Select one: a. 14.04 % b. None of these c. 11.50 % d. 12.25 %

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section9.8: The Weighted Average Cost Of Capital (wacc)

Problem 3ST

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