Question
GHJ Inc. is investing in a new project of $16 million. It will raise $4 million of bonds, $4 million of preferred stock, and $8
GHJ Inc. is investing in a new project of $16 million. It will raise $4 million of bonds, $4 million of preferred stock, and $8 million of new common stock. If the after-tax cost of debt is 6%, cost of preferred stock is 10%, the cost of retained earnings is 16%, and the cost of new common stock is 19%, what is the WACC?
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
