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Cullumber Co. has a capital structure, based on current market values, that consists of 40 percent...

Cullumber Co. has a capital structure, based on current market values, that consists of 40 percent debt, 19 percent preferred stock, and 41 percent common stock. If the returns required by investors are 9 percent, 11 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Cullumber’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round final answer to 2 decimal places, e.g. 15.25%.)

After tax WACC_____%
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Particulars Debt market value weights 40% weighted cost 2.16% cost of capital 5.40% 9%*(1-40%) 11.00% Preferred stock 19% 2.0

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