Question
MSFT has a target captial structure of 70% common stock, 5% of preferred stock, and 25% of debt. The cost of equity is 18%, the
| MSFT has a target captial structure of 70% common stock, |
| 5% of preferred stock, and 25% of debt. |
| The cost of equity is 18%, the cost of preferred is 2% |
| and the Before tax cost of Debt is 8%. |
| The relevant tax rate is 24%. |
| What is MSFT's WACC? |
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Finance For Real Estate Development
Authors: Charles Long
1st Edition
0874204305, 978-0874204308
