Question: Q25 PLEASE ANSWER CORRECTLY AND PROMPTLY!! SHOW ALL WORK!!! Pfd Company has debt with a yield to maturity of 7.0%, a cost of equity of

Q25 PLEASE ANSWER CORRECTLY AND PROMPTLY!! SHOW ALL WORK!!!

Q25 PLEASE ANSWER CORRECTLY AND PROMPTLY!! SHOW ALL WORK!!! Pfd Company has

Pfd Company has debt with a yield to maturity of 7.0%, a cost of equity of 13.0%, and a cost of preferred stock of 9.0%. The market values of its debt, preferred stock, and equity are $10.0 million, $3.0 million, and $15.0 million, respectively, and its tax rate is 25%. 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 6. (Round to two decimal places.)

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