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Reactive Power Generation has the following capital structure. Its corporate tax rate is 21% Security | Market Value | Required Rate of Return Debt |
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%
Security | Market Value | Required Rate of Return
Debt | $20 million | 6%
Preferred stock | $20 million | 8
Common stock | $40 million | 12
What is its WACC?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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