Question
Given the following information, what is the current WACC for this firm? Short Term Debt 2,000,000 Long Term Debt 7,000,000 Preferred Stock 1,000,000 Total Common
Given the following information, what is the current WACC for this firm?
Short Term Debt 2,000,000
Long Term Debt 7,000,000
Preferred Stock 1,000,000
Total Common Equity 4,000,000
Interest Rate Per Short Term Loan Documents 7.00%
Interest Rate per Long Term Loan Documents 9.00%
Dividend Rate on Preferred Stock 11.00%
Common Dividends Paid in Last 12 Months 15.00%
Company Tax Rate 35.00%
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
