Mirion Tech, Inc., has rE of 12%, an rD of 6%, at a debt-equity ratio of 0.50. Mirion plans to raise enough preferred stock to retire half of their outstanding common stock, which currently has a market value of $7 million. If the preferred stock has an expected rate of return of 10%, what is the new WACC? (Assume a 35% marginal corporate tax rate and thatrD remains at 6%.) please show work

1. 14.23%
2. 11.02%
3. 9.30%
4. 6.60%

Answer rating: 100% (QA)

Solution After tax rate of debt 61... View the full answer