The capital structure for HCA is provided below. If the firm has a 4% after tax cost

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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)?

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

Related Book For answer-question

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: Mar 15, 2024 11:24 AM

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The capital structure for HCA is provided below. If the firm has a 4% after tax cost

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To calculate the weighted average cost of capital WACC for HCA we need to determine the proportion o... View the full answer

Foundations of Finance The Logic and Practice of Financial Management

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