Geo Companyplans to invest several million dollars in new projects. Geo's target capital structure and other information
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Geo Companyplans to invest several million dollars in new projects. Geo's target capital structure and other information is given below:
Debt (Bonds)=
41%
Preferred stock=
10%
Common equity (Retained earnings)=
49%
The company's tax rate is 40%.
After-tax cost of debt= 5.0% ,rps= 6.5%, andrs=12%.
What is the company's WACC (Weighted Average Cost of Capital)?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: