Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 25%. The firm will not be issuing any new common stock. 

What is Avery's WACC?

Answer rating: 100% (QA)

Weight of equity EA Weight of equity WE055 Weight of ... View the full answer