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 | 30 | million | 4 | |||
| Common stock | 40 | million | 8 | |||
What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
