Question
1.The Zombie Corporation's common stock has a beta of 1.2.The risk-free rate is 4.8% and the expected return on the market is 11%.The company has
1.The Zombie Corporation's common stock has a beta of 1.2.The risk-free rate is 4.8% and the expected return on the market is 11%.The company has an issue of preferred stock with a $4.2 stated dividend that is selling for $92 per share.The company's cost of debt is 6% and its capital structure is 60% common stock, 35% debt, and 5% preferred stock.The average tax rate is 40%.What is the WACC?
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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
