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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 2% Preferred
| Reactive Industries has the following capital structure. Its corporate tax rate is 35%. |
| Security | Market Value | Required Rate of Return |
| Debt | $30 million | 2% |
| Preferred stock | 20 million | 4 |
| Common stock | 50 million | 8 |
| 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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Foundations Of Financial Markets And Institutions
Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones
4th Edition
0136135315, 978-0136135319
