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Calculate WACC for the following: Total funds $100 million. 25% from bonds, 25% from preferred stock, 50% from common. Cost of each: bonds: 9%; preferred
Calculate WACC for the following: Total funds $100 million. 25% from bonds, 25% from preferred stock, 50% from common. Cost of each: bonds: 9%; preferred 11%, common 8%. Question 1 options:
A) 11.00%
B) 2.75%
C) 4.00%
D) 9.00%
Question 2 :Calculate the WACC for the following: Cost of debt (bonds): 7%; cost of common: 5%; cost of preferred: 11%. Raised $25 million from bonds, $40 million from common, and $10 million from preferred.
Question 2 options:
A) 6.47%
B) 5.24%
C) 9%
D) 7.38%
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