Question
Master Onion Corporation has a target capital structure of 40 percent common stock, 10 percent preferred stock, and 50 percent debt. Its cost of
Master Onion Corporation has a target capital structure of 40 percent common stock, 10 percent preferred stock, and 50 percent debt. Its cost of equity is 15 percent, the cost of preferred stock is 7 percent, and the pre-tax cost of debt is 9 percent. What is the firm's WACC given a tax rate of 21 percent?
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Fundamentals Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
0072553073, 9780072553079
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