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Reactive Industries has the following capital structure. Its corporate tax rate is 40%. Security Market Value Required Rate of Return Debt $20 million 4% Preferred
| Reactive Industries has the following capital structure. Its corporate tax rate is 40%. |
| Security | Market Value | Required Rate of Return |
| Debt | $20 million | 4% |
| Preferred stock | 20 million | 6 |
| Common stock | 40 million | 10 |
| What is its WACC? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| WACC | % |
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp, Loreen Knapp
4th Edition
0324048610, 9780324048612
