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P 13-15 (similar to) Question Help AllCity, Inc., is financed 39% with debt, 13% with preferred stock, and 48% with common stP 13-16 (similar to) Question Help Pfd Company has debt with a yield to maturity of 6.9%, a cost of equity of 13.5%, and a co

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Answer #1

1.
=39%*6.4%*(1-35%)+13%*2.54/34+48%*(1.8%+1.1*6.9%)
=7.1008%

2.
=(10.5*6.9%*(1-38%)+3.2*8.7%+13.6*13.5%)/(10.5+3.2+13.6)
=9.3904%

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