a. Hanafi Corporation has a cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The firm has 104,000 shares of common stock outstanding at a market price of RM20 a share. There are 40,000 shares of preferred stock outstanding at a market price of RM34 a share. The bond issue has a total face value of RM500,000 and sells at 102% of face value. The company's tax rate is 34%. What is the weighted average cost of capital for Hanafi Corporation?

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Calculating Hanafi Corporations Weighted Average Cost of Capital WACC Heres how to calculate the WAC... View the full answer