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Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component Balance Sheet Value Market Value Cost of Capital Debt
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.
| Component | Balance Sheet Value | Market Value | Cost of Capital |
| Debt | 5,000,000.00 | 6,850,000.00 | 8% |
| Preferred Stock | 4,000,000.00 | 2,200,00.00 | 10% |
| Common Stock | 2,000,000.00 | 5,600,000.00 | 13% |
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To calculate the adjusted Weighted Average Cost of Capital WACC using market value and book value we ...
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
