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GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equity is 22
GenX has a target capital structure of 40 percent common stock, 5 percent preferred stock, and 55 percent debt. Its cost of equity is 22 percent, the cost of preferred stock is 8.5 percent, and the pre-tax cost of debt is 8 percent. What is the firm's WACC given a tax rate of 35 percent?
( ) | a. | 9.87 percent |
( ) | b. | 10.16 percent |
( ) | c. | 10.90 percent |
( ) | d. | 12.09 percent |
( ) | e. | 15.17 percent |
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