Question
MicroTech Corporation is subject to a 36% income tax rate. Given the following information about the firms capital structure, calculate the corporations weighted-average cost of
MicroTech Corporation is subject to a 36% income tax rate. Given the following information about the firms capital structure, calculate the corporations weighted-average cost of capital (WACC): (Do not round intermediate calculations. Round your answers to 2 decimal places. (i.e. 0.1234 = 12.34%).)
| Source of Funds | Market Value | After-Tax Rate or Expected Return | |
|---|---|---|---|
| Long-term debt | $ 90 | million | 7% |
| Preferred stock | 60 | million | 9 |
| Common stock | 80 | million | 13 |
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The Access Audit Handbook An Inclusive Approach To Auditing Buildings
Authors: Centre For Accessible Environments
3rd Edition
1914124839, 978-1914124839
