Cost of Preferred Stock 1 POINT e WACC 2 POINTS 10 In no more than 150 words

Cost of preferred stock 1 point e wacc 2 points 10 in

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Cost of Preferred Stock (1 POINT) (e) WACC (2 POINTS) 10. In no more than 150 words, explain (i) why the use of theafter-tax cost of debt and not the actual cost of debt and (ii) why firms should use the WACC compared to the cost of a single component source of financing? (4 POINTS)
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Retained earnings Balance 24000 + 51000 + 40000 + 125000 + 62000 = 30000 + 33000 + 40000 + 150000 + 49000 (i) 20000 -20000 (ii) -12000 12000 (iii) -10000 -10000 (iv) 20000 20000 (v) -5000 -5000
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30000 + 33000 + 40000 + 150000 + 49000 (i) 20000 -20000 (ii) -12000 12000 (iii) -10000 -10000 (iv) 20000 20000 (v) -5000 -5000 (vi) 42000 42000 (vii) -18000 -18000 (viii) -10050 -10050 (ix) -10000 -10000
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  • Fall '18
  • Johnson
  • Balance Sheet, Generally Accepted Accounting Principles

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