Rogers Communications is currently financed with 60% equity,20% preferred stock,and 20% debt.It has a cost of equity capital of 8.5%,a cost of preferred stock of 6%,and its pretax cost of debt is 7%.If the firm has a tax rate of 25%,what is Rogers's WACC?
A)7.04%
B)6.58%
C)7.17%
D)7.7%
E)7.35%

Question

Quizplus · Accepted Answer

The Answer of Rogers Communications is currently financed with 60% equity,20% preferred stock,and 20% debt.It has a cost of equity capital of 8.5%,a cost of preferred stock of 6%,and its pretax cost of debt is 7%.If the firm has a tax rate of 25%,what is Rogers's WACC?
A)7.04%
B)6.58%
C)7.17%
D)7.7%
E)7.35%

Rogers Communications Is Currently Financed with 60% Equity,20% Preferred Stock,and