Question
Thompson Biotech, Inc. raises capital using 45% debt 5% preferred stock 50% common stock The cost of their debt is 12% The cost of preferred
Thompson Biotech, Inc. raises capital using
45% debt
5% preferred stock
50% common stock
The cost of their debt is 12%
The cost of preferred stock is 7.5%
The cost of common stock is 14%.
What is their weighted average cost of capital (WACC)?
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Introduction To Finance
Authors: Lawrence J Gitman, Jeff Madura
1st Edition
0201635372, 9780201635379
