Idaho Engineering Inc. has a target capital structure of 27% debt, 10% preferred stock and 63%...
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Idaho Engineering Inc. has a target capital structure of 27% debt, 10% preferred stock and 63% common stock. The interest rate on new debt is 4.7% (before taxes), the yield on preferred stock is 8% and the cost of equity is 14%. The firm will not be issuing any new stock, and the tax rate is 34%. Part 1 BAttempt 1/4 for 10 pts. What is the company's weighted average cost of capital? Idaho Engineering Inc. has a target capital structure of 27% debt, 10% preferred stock and 63% common stock. The interest rate on new debt is 4.7% (before taxes), the yield on preferred stock is 8% and the cost of equity is 14%. The firm will not be issuing any new stock, and the tax rate is 34%. Part 1 BAttempt 1/4 for 10 pts. What is the company's weighted average cost of capital?
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