#18

You were hired as a consultant to Gigmbono Company, whose target capital structure is 40% debt, 15\%, preferred, and 45% comman equity, The after-tax cost of debt is 6. 00\%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.00%. The firm will nol be issuing any new stock. What is its Wacc? 3. 7.68% b. 6,96% =7.59% d. 8.93% 2. 6,69%