Marigold Company is financed by $2 million in debt, $1 million in preferred stocks, and $7...

 

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Marigold Company is financed by $2 million in debt, $1 million in preferred stocks, and $7 million in common stocks. The pre-tax cost of debt is 4%, the cost of preferred stock is 6%, and the cost of equity is 14%. Calculate the weighted average cost of capital. Assume 21% tax rate. Marigold Company is financed by $2 million in debt, $1 million in preferred stocks, and $7 million in common stocks. The pre-tax cost of debt is 4%, the cost of preferred stock is 6%, and the cost of equity is 14%. Calculate the weighted average cost of capital. Assume 21% tax rate.

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC for Marigold Company we need to fin... View the full answer