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Reactive Industries has the following capital structure. Its corporate tax rate is 35%. Security Market Value Required Rate of Return Debt $30 million 6% Preferred
| Reactive Industries has the following capital structure. Its corporate tax rate is 35%. |
| Security | Market Value | Required Rate of Return |
| Debt | $30 million | 6% |
| Preferred stock | 30 million | 8 |
| Common stock | 40 million | 12 |
| What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
| WACC | % |
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Intermediate Accounting
Authors: Fred Skousen, James Stice, Earl Kay Stice
14th Edition
0324013078, 9780324013078
