According to Ryze Tech's balance statement, its total debt is $30 million, its preferred stock is worth

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According to Ryze Tech's balance statement, its total debt is $30 million, its preferred stock is worth $5 million, and its total equity is $25 million. The tax rate is 26%, while cost of debt is 5%, cost of prefereed stock is 2.0%, and cost of common equity is 12%.

What is Ryze's WACC (in percent) if its intended capital structure is 75% common stock, 20% debt, and 5% preferred stock?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jun 11, 2023 05:04 AM

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According to Ryze Tech's balance statement, its total debt is $30 million, its preferred stock is worth

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To calculate the weighted average cost of capital WACC for Ryze Tech we need to determine the weight... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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