Question
Question 4: WACC: BAs tax rate is 40%. Assume BA has $100,000,000 in capital financing in the following components: Capital Source Amount CAPM or Interest
Question 4: WACC: BAs tax rate is 40%. Assume BA has $100,000,000 in capital financing in the following components:
| Capital Source | Amount | CAPM or Interest Rate |
| Common Stock | $40,000,000 | 4.50% |
| Long Term Debt | $40,000,000 | 6.00% |
| Preferred Stock | $20,000,000 | 3.00% |
Calculate BAs WACC.
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The Foundations Of Business Analysis
Authors: M Douglas Berg
1st Edition
1465222030, 9781465222039
