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