Question: The capital structure for HCA is provided below. If the firm has a 4% after tax cost of debt, 7% commercial loan rate, a 12.5%

The capital structure for HCA is provided below. If the firm has a 4% after tax cost of debt, 7% commercial loan rate, a 12.5% cost of preferred stock, and an 17% cost of common stock, what is the firm's weighted average cost of capital (WACC)? [a]

Note: format is xx.xx%

Capital Structure (in K's)
Bonds$ 1,083
Commercial Loans$ 2,845
Preferred Stock$ 268
Common Stock$ 3,681

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The capital structure for HCA is provided below.
The capital structure for Capital Health is provided below. If the rm has a 8% after tax cost of long term debt, 12% commerical loan rate, 6% commerical paper rate, short term bond rate of 5%, a 9% cost of preferred stock, and an 15% cost of common stock, what is the rm's weighted average cost of capital (WACC)? #2 #3 Capital Structure (in K's) Weights Individual Costs Weighted Costs Long Term Bonds $ 3,000 22.15% 8.00% 1.77% Commercial Loans $ 2,845 21.00% 12.00% 2.52% Commercial Paper $ 1,500 1 1.07% 6.00% 0.66% Short Term Bonds 5 1,200 8.86% 5.00% 0.44% Preferred Stock $ 500 3.69% 9.00% 0.33% Common Stock $ 4,500 33.22% 15.00% 4.98% #1 $ 13,545 = 100.00% #4_=WACC

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