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Calculate the WACC for the following situation. Show your calculations in detail. Borrow 10 million Bank Loan Monthly payments 8% annual rate. Issue 15 million

  1. Calculate the WACC for the following situation. Show your calculations in detail.

Borrow 10 million Bank Loan Monthly payments 8% annual rate.

Issue 15 million in Common Stock Earnings per share 45 cents Price per share 26.00 dollars

Issue 10 million in Preferred Stock Dividend per share 10 dollars Price per share 220 dollars Cost of selling each preferred share 3 dollars

Use 12 million in Retained Earnings

Income tax rate 35%

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