Question
ch.13 #1 Reactive Power Generation has the following capital structure. Its corporate tax rate is 30%. Security Market Value Required Rate of Return Debt $
ch.13 #1
Reactive Power Generation has the following capital structure. Its corporate tax rate is 30%.
| Security | Market Value | Required Rate of Return | ||||
| Debt | $ | 10 | million | 4 | % | |
| Preferred stock | 30 | million | 6 | |||
| Common stock | 40 | million | 10 | |||
What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
its not 2.13 0r 7.425
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Bond Markets Analysis And Strategies
Authors: Frank J Fabozzi
8th Edition
013274354X, 9780132743549
