11. You are given the market values of CHAR's capital structure as follow: $52 million in...
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11. You are given the market values of CHAR's capital structure as follow: $52 million in total common equity, $20 million in debt, and $8 million in preferred stock. CHAR's tax rate is 40%. After-tax cost of debt is 7%, cost of preferred stock is 5.5%, and cost of common equity is 15%. If CHAR's book value capital structure weights are 60% common equity, 25% debt, and 15% preferred stock, what is CHAR's WACC? * (5 Points) 11.35% 11.57% 10.87% 12.05% 11. You are given the market values of CHAR's capital structure as follow: $52 million in total common equity, $20 million in debt, and $8 million in preferred stock. CHAR's tax rate is 40%. After-tax cost of debt is 7%, cost of preferred stock is 5.5%, and cost of common equity is 15%. If CHAR's book value capital structure weights are 60% common equity, 25% debt, and 15% preferred stock, what is CHAR's WACC? * (5 Points) 11.35% 11.57% 10.87% 12.05%
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Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
Posted Date:
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