Clark Explorers, Inc., an engineering firm, has the following capital structure:

Using market value and book value (separately, of course), find the adjusted WACC for Clark Explorers at the following tax rates:

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 15%?

What is the book value adjusted WACC for Clark Explorers at a tax rate of 15%?

d. What is the market value adjusted WACC for Clark Explorers at a tax rate of 5%?

What is the book value adjusted WACC for Clark Explorers at a tax rate of 5%?

Market Price Outstanding units Book value Cost of capital Equity $42.83 128,000 $3,422,000 16.52% Preferred Stock $97.69 15,000 $1,425,000 11.57% Debt $947.92 5,214 $5,214,000 9.7%