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You are given the following information: CFBT = $164,000; T = 30 percent; this project will last for eight years. The project has a 1.6-
You are given the following information: CFBT = $164,000; T = 30 percent; this project will last for eight years. The project has a 1.6- percent extra risk premium compared with the firm's cost of capital. The firm has 40-percent debt at a cost of 6 percent and 40- percent common equity at a cost of 12 percent, and the remainder is preferred shares at 8 percent. (a) What is the WACC? (Round answer to 2 decimal places, e.g. 15.75.) WACC h %
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