Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the follwoing proportions: debt, 43%; preferred stock, 11%; and common stock, 46%. If the cost of debt is 6.4%, preferred stock costs 9.5%, and common stock cost 11.7%, what is Oxy's weighted average cost of capital (WACC)?

Evans Technology has the following capital structure. Debt Common equity 35% 65 The aftertax cost of debt is 7.50 percent, and the cost of common equity (in the form of retained earnings) is 14.50 percent. a. What is the firm's weighted average cost of capital? Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Debt Common equity Weighted average cost of capital Weighted Cost % % An outside consultant has suggested that because debt is cheaper than equity, the firm should switch to a capital structure that is 50 percent debt and 50 percent equity. Under this new and more debt-oriented arrangement, the aftertax cost of debt is 8.50 percent, and the cost of common equity (in the form of retained earnings) is 16.50 percent. Debt Common equity Weighted average cost of capital b. Recalculate the firm's weighted average cost of capital. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal…

Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following​ weights: 40​% ​long-term debt, 15​% preferred​ stock, and 45​% common stock equity​ (retained earnings, new common​ stock, or​ both). The​ firm's tax rate is 26​%.   Debt The firm can sell for ​$1005 a 13​-year, $1,000​-par-value bond paying annual interest at a 6.00​% coupon rate. A flotation cost of 2.5​% of the par value is required.   Preferred stock  7.00​% (annual dividend) preferred stock having a par value of ​$100 can be sold for ​$98. An additional fee of ​$5 per share must be paid to the underwriters.   Common stock  The​ firm's common stock is currently selling for ​$80 per share. The stock has paid a dividend that has gradually increased for many​ years, rising from ​$2.50 ten years ago to the ​$4.92 dividend​ payment, D0​, that the company just recently made. If…

Oxy Corporation uses debt, preferred stock, and common stock to raise capital. The firm's capital structure targets the following proportions: debt, 40%; preferred stock, 11%; and common stock, 49%. If the cost of debt is 7.1%, preferred stock costs 9.2%, and common stock costs 10.2%, what is Oxy's weighted average cost of capital (WACC)? Oxy's weighted average cost of capital (WACC) is %. (Round to two decimal places.)

Gamma Inc. has a weighted average cost of capital of 18.60%. The firm’s cost of equity is 24.40%, and it’s cost of debt is 15%. The tax rate is 34%. What is Gamma’s debt-to-equity ratio?

Oxy Corporation uses​ debt, preferred​ stock, and common stock to raise capital. The​ firm's capital structure targets the following​ proportions: debt, 49​%; preferred​ stock, 10​%; and common​ stock, 41​%. If the cost of debt is 7.3​%, preferred stock costs 7.6​%, and common stock costs 10.9​%​, what is​ Oxy's weighted average cost of capital ​ (WACC​)? \ ​Oxy's weighted average cost of capital​ (WACC) is ___________%. ​ (Round to two decimal​ places.)

Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following​ weights: 35​% ​long-term debt, 20​% preferred​ stock, and 45​% common stock equity​ (retained earnings, new common​ stock, or​ both). The​ firm's tax rate is 21​%. Debt The firm can sell for ​$1030 a 13​-year, ​$1,000​-par-value bond paying annual interest at a 7.00​% coupon rate. A flotation cost of 2​% of the par value is required. Preferred stock 8.5​% ​(annual dividend) preferred stock having a par value of ​$100 can be sold for ​$90. An additional fee of ​$4 per share must be paid to the underwriters. Common stock The​ firm's common stock is currently selling for ​$60 per share. The stock has paid a dividend that has gradually increased for many​ years, rising from ​$2.75 ten years ago to the ​$5.41 dividend​ payment, D0​, that the company just recently made. If the…