Question: Here is the data for WACC from a company that concentrates in publiclectric rate case from 1999, please calculate the WACC (ignore the after-tax calculation
Here is the data for WACC from a company that concentrates in publiclectric rate case from 1999, please calculate the WACC (ignore the after-tax calculation of the debt cost of capital)?
Capitalization Ratios Cost of Capital
Common Equity 48% 14.8%
Preferred Stock 11% 8.1%
Long-term Debt 41% 8.3%
How does a higher beta affect WACC and why?
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