Question: 9 Company A has a capital structure as shown below. Calculate its weighted average cost of capital. Debt (after tax Preferred Stock Common Stock K

9 Company A has a capital structure as shown below. Calculate its weighted average cost of capital. Debt (after tax Preferred Stock Common Stock K 13.00% 8.50% 6.00% Dollars 400,000 100,000 500,000 1,000,000 a b 6.99% 7.25% 8.55% 9.05% none of the above. d 10 1 Afirm uses debt, and borrows at 6.35%. Its marginal tax rate is 33%. Calculate the after tax component cost of debt 4.25% 4.50% 4.97% 8.00% OP

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