Question
MacroChip has a target capital structure with 30% long term debt, 5% preferred stock, and 60% common equity. Before tax cost of long term debt
MacroChip has a target capital structure with 30% long term debt, 5% preferred stock, and 60% common equity. Before tax cost of long term debt is rD is 10%, before tax cost short debt is rSTD is 7%, cost of preferred stock rPS id 8.25% cost of equity id rS 13%. If the marginal tax rate is 25% what is the WACC?
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Financial Management In The Sport Industry
Authors: Matthew T. Brown, Daniel A. Rascher, Mark S. Nagel, Chad D. McEvoy
3rd Edition
0367321211, 978-0367321215
