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Horace Corporation's cost of equity is 20 percent, its before-tax cost of debt is 2 percent, and its cost of preferred stock is 4.5 percent.
Horace Corporation's cost of equity is 20 percent, its before-tax cost of debt is 2 percent, and its cost of preferred stock is 4.5 percent. The market value of its equity is $450 million, the market value of its debt is $ 370 million, and the market value of its preferred stock is $90 million. If the tax rate is 34 percent, what is Horace Corporation's weighted average cost of capital WACC?
Group of answer choices
11.42%
11.15%
8.61%
10.87%
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