Question: Problem 15 * Intro Idaho Engineering Inc. has a target capital structure of 22% debt, 10% preferred stock and 68% common stock. The Interest rate

Problem 15 * Intro Idaho Engineering Inc. has a target capital structure of 22% debt, 10% preferred stock and 68% common stock. The Interest rate on new debt is 4.5% (before taxes), the yield on preferred stock is 8% and the cost of retained earnings is 11%. The firm will not be issuing any new stock, and the tax rate is 34% Part 1 VE - Attempt 7/10 for 10 pts. What is the company's weighted average cost of capital? 3+ decimals Submit

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