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You were hired as a consultant to Huntington Technology Company, whose target capital structure is 30% debt, 15% preferred, and 55% common equity. The interest
You were hired as a consultant to Huntington Technology Company, whose target capital structure is 30% debt, 15% preferred, and 55% common equity.
The interest rate on new debt is 5.50%, the yield on the preferred is 6.50%, the cost of retained earnings is 12.0%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Huntington Technology Company's WACC?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
