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Adjusted WACC. Clark Explorers, Inc., an engineering firm, has the following capital structure: Equity Preferred Stock Debt Market Price $56.14 $101.55 $954.28 Outstanding units 120,000
Adjusted
WACC.
Clark Explorers, Inc., an engineering firm, has the following capital structure:
Equity | Preferred Stock | Debt |
|
Market Price | $56.14 | $101.55 | $954.28 |
Outstanding units | 120,000 | 14,000 | 5,825 |
Book value | $3,305,000 | $1,438,000 | $5,825,000 |
Cost of capital | 15.81% | 12.01% | 10.9% |
. Using market value and book value (separately, of course), find the adjusted WACC for Clark Explorers at the following tax rates:
a.35%
b.30%
c.15%
d.10%
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