Aav AaBbCcDdEe AaBbCcDdEc AaBbCcDc AabbCcDdEt AaBb ADA Normal No Spacing Heading 1 Heading 2 Title 4 5 A firm has the following data: Target capital structure of 30% debt, 20% preferred stock, and 50% common equity; Tax rate = 40%; ka = 8%; ke = 10%; ks = 13%; ke = 15%. What is the firm's weighted average cost of capital (WACC) if it does not issue any new common stock? You were recently hired by a company to estimate its cost of capital. You obtained the following data: D1 - $1.75; Po - $42.5; g = 7%; F = 5%. What is the cost of new common stock (ke)? lfa firm's before-tax cost of debt is 5% and the firm's tax rate is 30%, what would be its after-tax cost of debt