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You were hired as a consultant to restructure operating capital. The recommended goal is for the firm to have a capital structure is 33% debt,
You were hired as a consultant to restructure operating capital. The recommended goal is for the firm to have a capital structure is 33% debt, 8% preferred, and 59% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 11.25%, and the tax rate is 42.7%. The firm will not be issuing any new stock. The firm's projected WACC is ______%
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