Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%. Security Market Value
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Question:
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%.
Security | Market Value | Required Rate | ||||
Debt | $ | 20 | million | 6 | % | |
Preferred stock | 10 | million | 8 | |||
Common stock | 50 | million | 12 | |||
What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) (3 Marks) (Ch 13)
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260566093
10th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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