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Wackmann, Co. has got the following capital structure: a 250 M (million) bond issuance whose coupon is 6,12%; preferred equity worth 82 M (million) whose
Wackmann, Co. has got the following capital structure: a 250 M (million) bond issuance whose coupon is 6,12%; preferred equity worth 82 M (million) whose fixed dividend is 7,80%; and common equity worth 121 M, whose required rate of return is 16,20%. Please, compute the companys WACC. Ignore taxes for the sake of simplicity.
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