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24. General Electric has issued common shares and bonds, and its current WACC is 10.00%. The company is now considering the issuance of preferred shares
24. General Electric has issued common shares and bonds, and its current WACC is 10.00%. The company is now considering the issuance of preferred shares for the funding of a project. The preferred shares have an issue price of $50 and a perpetual annual dividend or $4 per share. If the company issues the preferred shares: A. The new WACC will be greater than 10.00% B. The new WACC will be less than 10.00% C. The new WACC will be exactly 8.00% D. The new WACC will be exactly 10.00%
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
