Question
ABC, Inc.'s target capital structure is 30% debt, 45% preferred, and 25% common equity. The before-tax cost of debt (RD) is 4.04%, the cost of
ABC, Inc.'s target capital structure is 30% debt, 45% preferred, and 25% common equity. The before-tax cost of debt (RD) is 4.04%, the cost of preferred stock (RP) is 12.39%, and the cost of common stock (RE) is 26.27%. If the tax rate is 25%. What is the WACC?
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Project Finance In Asia
Authors: Larry H. P. Lang
1st Edition
0444828044, 9780444828040
