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Q18 Compute the WACC of a firm that currently has $2 million in debt, $3 million in equity, and $1 million in preferred stock. The
Q18
Compute the WACC of a firm that currently has $2 million in debt, $3 million in equity, and $1 million in preferred stock. The current yield to maturity on the firm's debt is 6%. Equity holders require a 9% return and preferred stock holders require a 7.859% return. The current tax rate that applies to the firm is 30%. Write your answer as a decimalStep by Step Solution
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