Question
Target % in Capital Structure Component Cost (pre-tax) Debt 35.00% 5.30% Preferred Stock 15.00% 8.57% Equity 50.00% 12.81% Tax Rate = 25.00% Based on the
| Target % in Capital Structure | Component Cost (pre-tax) | |
| Debt | 35.00% | 5.30% |
| Preferred Stock | 15.00% | 8.57% |
| Equity | 50.00% | 12.81% |
| Tax Rate = | 25.00% |
|
Based on the information in the table, what is the firm's WACC?
Group of answer choices
9.83%
9.35%
9.54%
9.08%
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Financial Literacy For Managers
Authors: Richard A. Lambert
1st Edition
1613630182, 978-1613630181
