Question
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%. Security Market Value Required Rate of Return Debt $ 30 million
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%.
| 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?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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The Nurse Managers Guide To Budgeting And Finance
Authors: Al Rundio
2nd Edition
1940446589, 978-1940446585
