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can you show me 9 and 10? 9. Calculating WACC [1.O3] Targaryen Corporation has a target capital structure of 70 percent common stock. 5 percent
can you show me 9 and 10?
9. Calculating WACC [1.O3] Targaryen Corporation has a target capital structure of 70 percent common stock. 5 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preterred stock is 5 percent, and the pretax cost of debt is 6 percent. The relexant tax rate is 23 percent. a. What is the compary 's WAC() h. The company president has approached you about the company's capital structare. He wants to know why the company doesn't use more preferred stock financing because it costs less than debt. What would you tell the president? 11. Iaxes and WA( ( [1,()3] I annister Manulacturing has a target debt-equity ratio of .55 Its cost of cquity is 11 percent, and is cost of dobt is 6 percent. If the tax rate isStep by Step Solution
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