Question
ACME Co. is financed with the following: Equity 46%, Preferred Stock 5%, Debt 49%. The required returns are: Equity 15.8%, Preferred 8.3%, Debt 6.8%. Tax
ACME Co. is financed with the following: Equity 46%, Preferred Stock 5%, Debt 49%. The required returns are: Equity 15.8%, Preferred 8.3%, Debt 6.8%. Tax rate is 23%. Calculate WACC.
I solved it and got 10.25. Please let me know if this is correct. Thank you
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Corporate Finance For Dummies
Authors: Michael Taillard
2nd Edition
1119850312, 978-1119850311
