A company has a marginal cost of equity at 15%, while it pays dividend of 12% on

Question:

A company has a marginal cost of equity at 15%, while it pays dividend of 12% on its preferred stock, with an interest payout on a per bond basis of $95 annually. The company is 60% equity (common stock) funded, and 10% funded by preferred stock. The applicable corporate tax rate is 34%. Please find the WACC of this company.

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...