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Suppose Hornet Inc. has the following information, what is its WACC? It has a 40% corporate tax rate and is funded as follows. $18,000,000 equity
Suppose Hornet Inc. has the following information, what is its WACC? It has a 40% corporate tax rate and is funded as follows. $18,000,000 equity with a return of 14% $12,000,000 debt with a 10% pre-tax cost of debt $7,000,000 preferred with a 12% cost of preferred a) 12.32% b) 14.00% c) 10.67% d) 11.03%
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