Question: Q11 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Pfd Company has debt with a coupon rate of 3% and a yield to maturity

Q11 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!!

Q11 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Pfd Company

Pfd Company has debt with a coupon rate of 3% and a yield to maturity of 5%, and a cost of equity of 16%. The market values of its debt and equity are $11 million and $15 million, respectively, and its tax rate is 30%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is \%. (Round to two decimal places.)

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