Problem 13-9 Calculating WACC (LO3) Reactive Industries has the following capital structure. Its corporate tax rate is 30%. Security Market Value Required Rate of Return Debt $20 million 2% Preferred stock 30 million 4 Common stock 50 million 8 What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC

Problem 13-9 Calculating WACC (LO3)

Reactive Industries has the following capital structure. Its corporate tax rate is 30%.

Security	Market Value	Required Rate of Return
Debt	$20 million	2%
Preferred stock	30 million	4
Common stock	50 million	8

What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

WACC

%