Geo Companyplans to invest several million dollars in new projects. Geo's target capital structure and other information

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Geo Companyplans to invest several million dollars in new projects. Geo's target capital structure and other information is given below:

Debt (Bonds)=

41%

Preferred stock=

10%

Common equity (Retained earnings)=

49%

The company's tax rate is 40%.

After-tax cost of debt= 5.0% ,rps= 6.5%, andrs=12%.

What is the company's WACC (Weighted Average Cost of Capital)?

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: Feb 20, 2024 07:07 AM

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Geo Companyplans to invest several million dollars in new projects. Geo's target capital structure and other information

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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