Question
Splash has a capital structure of 35% debt, 60% equity, and 5% preferred stocks. Splash's bonds have yield-to-maturity of 8%. Splash's cost of preferred stocks
Splash has a capital structure of 35% debt, 60% equity, and 5% preferred stocks. Splash's
bonds have yield-to-maturity of 8%. Splash's cost of preferred stocks is 15%. Splash's beta
is 1.7 and tax rate is 21%. The market expected return is 11% and the risk-free rate is 2%.
What is Splash's WACC?
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The Evolution Of Finance
Authors: Barbara Guth
1st Edition
1633377261, 978-1633377264
