Question: Pike Delivery Company ( PDC ) has 3 5 % debt, 5 5 % common equity and 1 0 % preferred stock. The after -

Pike Delivery Company (PDC) has 35% debt, 55% common equity and 10% preferred stock. The after-tax cost of debt is 6%. The required return on common equity is 14%. The cost of preferred stock is 11%. What is their Weighted Average Cost of Capital?

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