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Clark Explorers, Inc., an engineering firm, has the following capital structure B Using market value and book value (separately, of course), find the adjusted WACC
Clark Explorers, Inc., an engineering firm, has the following capital structure B Using market value and book value (separately, of course), find the adjusted WACC for Clark Explorers at the following tax rates: Market Price Outstanding units Book value Cost of capital Equity Preferred Stock Debt 101.35 152.17 914.35 122,000 7,000 6,311 3,396,000 1,167,000 6,311,000 14.53% 11.26% 8.30% a. 35% b. 30% c. 20% d. 10% Round to two decimal places a. What is the market value adjusted WACC for Clark Explorers at a tax rate of 35%? What is the book value adjusted WACC for Clark Explorers at a tax rate of 35%? b. What is the market value adjusted WACC for Clark Explorers at a tax rate of 30%? What is the book value adjusted WACC for Clark Explorers at a tax rate of 30%? c. What is the market value adjusted WACC for Clark Explorers at a tax rate of 20%? What is the book value adjusted WACC for Clark Explorers at a tax rate of 20%? d. What is the market value adjusted WACC for Clark Explorers at a tax rate of 10%? What is the book value adjusted WACC for Clark Explorers at a tax rate of 10%
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