Question: Using the balance sheet provided for Universal Exports, determine the weighted average cost of capital. The firm's tax rate is 35%, the preferred stock pays

 Using the balance sheet provided for Universal Exports, determine the weighted

Using the balance sheet provided for Universal Exports, determine the weighted average cost of capital. The firm's tax rate is 35%, the preferred stock pays a dividend of $0.50 per share, the beta of the stock is 1.67, the market risk premium is 8%, and the risk-free rate is 7%. Assume that the book value capital structure weights are the company's optimal weights. What is the proportion of debt in the firm's capital structure, omega_d? ____% What is the proportion of preferred stock in the firm's capital structure, omega_p? ______% What is the proportion of common equity in the firm's capital structure, omega_e? _____% What is the after-tax cost of debt for Universal Exports

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