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- WACC = wdrd(1 T) + wprp + wcrs Assume target capital structure: 20% debt, 15% preferred, 65% common equity Cost of debt: 10%
- WACC = wdrd(1 T) + wprp + wcrs Assume target capital structure: 20% debt, 15% preferred, 65% common equity Cost of debt: 10% Cost of preferred: 9% Cost of equity: 14% and Tax rate of 40%. What is the WACC? Select one: a. 11.16% b. 10% c. 11.65% Od. 12%
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
77639731, 978-0077639730
