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Reactive Industries has the following capital structure. Its corporate tax rate is 20%. Security Market Value Required Rate of Return Debt $20 million 4% Preferred
Reactive Industries has the following capital structure. Its corporate tax rate is 20%.
| Security | Market Value | Required Rate of Return |
| Debt | $20 million | 4% |
| Preferred stock | 30 million | 6 |
| Common stock | 50 million | 10 |
What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
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Financial Modeling
Authors: Simon Benninga
2nd Edition
0262024829, 9780262024822
