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TB MC Qu. 11-44 Suppose that PAW, Incorporated has a... Suppose that PAW, Incorporated has a capital structure of 60 percent equity, 10 percent preferred

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TB MC Qu. 11-44 Suppose that PAW, Incorporated has a... Suppose that PAW, Incorporated has a capital structure of 60 percent equity, 10 percent preferred stock, and 30 percent debt. If the before-tax component costs of equity, preferred stock and debt are 17.5 percent, 12 percent and 6.5 percent, respectively, what is PAW's WACC if the firm faces an average tax rate of 21 percent? Multiple Choice 10.71 percent 4.00 percent 13.24 percent 13.10 percent

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