AllCity, Inc , is financed 40 with debt, 10 with preferred stock, and 50 with common stock Its pretax cost of debt is 6 , its preferred stock pays an annual dividend of $2 50 and is priced at $30 It has an equity beta of 1 1 Assume the risk free rate is 2 , the market risk premium is 7 and AllCity ...

Its aftertax costs of debt is 1 035006 Its ...

AllCity, Inc., is financed 40% with debt, 10% with preferred stock, and 50% with common stock. Its

Question:

AllCity, Inc., is financed 40% with debt, 10% with preferred stock, and 50% with common stock. Its pretax is 6%, its preferred stock pays an annual of $2.50 and is priced at $30. It has an equity beta of 1.1. Assume the risk-free rate is 2%, the market risk premium is 7% and AllCity's tax rate is 35%. What is its after-tax WACC?
Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... 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...