Question
PNB industries has $20,000,000 shares in common stocks outstanding if the market price is $18.00 per share.The company also has preferred stock with a market
PNB industries has $20,000,000 shares in common stocks outstanding if the market price is $18.00 per share.The company also has preferred stock with a market value of $50,000,000 and 500,000 bonds outstanding with a face value of $1,000 and selling at 97% par value. The cost of equity id 15% ncost of preferred stock is 12% and the cost of debt is &8.50. If a PNB tax rate is 40% what is theWACC?
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The Complete Personal Finance Handbook
Authors: Teri B Clark
1st Edition
160138047X, 978-1601380470
