Question
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%
WACC = wc * rs + wp * rp + wd * rd * (1-T) WACC = WACC = ?%
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
