Healthy Snacks has a target capital structure of 60 percent common stock, 3 percent preferred stock, and
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Healthy Snacks has a target capital structure of 60 percent common stock, 3 percent preferred stock, and 37 percent debt. Its cost of equity is 16.8 percent, the cost of preferred stock is 11.4percent, and the pretax cost of debt is 8.3 percent. What is thecompany\'s WACC if the applicable tax rate is 34 percent?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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