Question: Suppose that MNINK Industries capital structure features 63 percent equity
Suppose that MNINK Industries’ capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt. If the before-tax component costs of equity, preferred stock and debt are 11.60 percent, 9.5 percent, and 9 percent, respectively, what is MNINK’s WACC if the firm faces an average tax rate of 34 percent?
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