The target capital structure for jm is 53 common stock 16


The target capital structure for JM is 53% common stock, 16% preferred stock, and 31% debt. If the cost of common equity for the firm is 19.1, the cost of preferred stock is 12.8%, and the before-tax cost of debt is 10.2%, what is JM's cost of capital? The firm's tax rate is 34%.

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Financial Econometrics: The target capital structure for jm is 53 common stock 16
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