Finc 3331 - Spring 2021 Test #3 Fruit Loops Co Fruit Loops Co. has the following capital structure: 7% First Mortgage Bonds - $70,000,000 outstanding: 9.5% senior sub-ordinated Bonds - $44,000,000 outstanding: Class A preferred stock paying 4%, $21,000,000 outstanding, Class B preferred stock paying 6.25% $20,000,000 outstanding, Common Equity $91,000,000 outstanding paying 12.5% Its tax rate is 36% a) What is Fruit Loops Co WACC? and b) Fruit Loops Co is considering the issuance of $30,000,000 project financing bonds for an up-coming capital project The bonds will be priced at 80%. What is Fruit Loops Co WACC with the new issue? Page 79