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A firm has 300,000 shares of common stock outstanding, trading at $11.21 per share. They have 50,000 shares of preferred stock trading at $19.45 per
A firm has 300,000 shares of common stock outstanding, trading at $11.21 per share. They have 50,000 shares of preferred stock trading at $19.45 per share and $2,500,000 (market value) in debt. Their tax rate is 33%. If the cost of common stock is 13%, the cost of preferred stock is 9%, and the cost of debt is 6.5%, what is the firms WACC?
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