2. Find the WACC(10 points) Market Values of capital: Equity Debt Preferred 30 million 50 million...

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2. Find the WACC(10 points) Market Values of capital: Equity Debt Preferred 30 million 50 million 5 million Cost of Equity 14% before tax Cost of Preferred = 6% before tax Tax rate = 30% Cost of debt info: 5 year bond with a 7% coupon rate priced at 900 with a 2% floatation cost. 2. Find the WACC(10 points) Market Values of capital: Equity Debt Preferred 30 million 50 million 5 million Cost of Equity 14% before tax Cost of Preferred = 6% before tax Tax rate = 30% Cost of debt info: 5 year bond with a 7% coupon rate priced at 900 with a 2% floatation cost.

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC we need to first determine the cost of each c... View the full answer