Question
We have the following information regarding Company Done-It-All: It has $29 million of debt, $9 million of preferred stocks, and $60 million common equity. The
We have the following information regarding Company Done-It-All:
It has $29 million of debt, $9 million of preferred stocks, and $60 million common equity.
The companies currently has 30-year, 6%, semiannual coupon bonds selling at $1,210.
The company has a beta of 1.1, the market expected return is 13.75%, and the risk-free rate is 5.65%.
The company's preferred stocks, which pay 5% of the $100 par value as interests every year, is currently selling at $50.
The company pays 35% in corporate income tax.
What's the company's WACC?
Note: your answer should be in the XX.XX% format, with the XX.XX part put into the answer box and the "%" put into the unit box.
Your Answer:
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