Courtney's insurance company has a capital structure of 45% debt, 15% preferred stock and 40% common stock. Its cost of equity is 12%, the cost preferred stock is 8%, and its cost of debt is 4%. The company's tax rate is 21%. What is the after-tax WACC?

Answer rating: 100% (QA)

To calculate the aftertax weighted average cost of capital WACC we need ... View the full answer