Question
Q 11 Question 11 (8 points) Company Q has debt with an annual yield to maturity (including floatation costs) of 3.68%. The market value of
Q 11 Question 11 (8 points) Company Q has debt with an annual yield to maturity (including floatation costs) of 3.68%. The market value of the common stock is $1,260,000,000, the market value of the debt is $360,000,000, and the market value of the preferred is $180,000,000. The marginal corporate tax rate is 21%. The annual required return on the common stock is 14.72%. The annual required return on the preferred is 6.11%. What is Company Qs annual WACC? Please round to four places in your calculations. Select one: .0897 .0955 .1022 .1102 .1149 .1216 .1285
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