Gentech, Inc. financed a new product as follows: $5 million in stock sales at 13.7% per year,

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Gentech, Inc. financed a new product as follows: $5 million in stock sales at 13.7% per year, $2 million in retained earnings at 8.9% per year, and $3 million through convertible bonds at 7.8% per year. The company’s WACC is closest to:

(a) 9% per year

(b) 10% per year

(d) 12% per year

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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Question Posted: Dec 17, 2012 06:06 AM

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Gentech, Inc. financed a new product as follows: $5 million in stock sales at 13.7% per year,

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Engineering economy

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