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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 $10 million 6% Preferred
Reactive Industries has the following capital structure. Its corporate tax rate is 20%. |
Security | Market Value | Required Rate of Return |
Debt | $10 million | 6% |
Preferred stock | 20 million | 8 |
Common stock | 50 million | 12 |
What is its WACC? |
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