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Q: What is the WACC using the info below? Weights Total Market Value of the Firm = Total Value of Debt + Total Value of
Q: What is the WACC using the info below?
Weights Total Market Value of the Firm = Total Value of Debt + Total Value of CS + Total Value of PS
Total Market Value of the Firm =$17,920,000
Weight of Debt wd= Value debt / value of the firm 0.406250
Weight of CS wc= value of common stock / value of the firm 0.549107
Weight of PS wp= value of preferred stock / value of the firm 0.044643
Tax Rate (T) 35%
rs = 12.9%
rp = 10.31%
rd = 7.61%
WACC = wc* rs+ wp* rp+ wd* rd* (1-T) WACC =WACC =?%
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