Question
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%. Security Market Value Required Rate of Return Debt $ 10 million
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%.
| Security | Market Value | Required Rate of Return | |
|---|---|---|---|
| Debt | $ 10 | million | 6% |
| Preferred stock | 30 | million | 8 |
| Common stock | 60 | 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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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
