Pizza Mizza has a complex capital structure to run its pizza business It uses equity, preferred stock, and debt in the following proportions 40 , 10 , and 50 , respectively The annual costs of equity, preferred stock, and debt equal 16 , 8 , and 5 , respectively Pizza Mizza falls into 29 corporate income tax bracket Calculate Pizza Mizza's average annual cost of running its pizza business, also known as the Weighted Average Cost of Capital Your answer should be in , not in decimals e g , 10 23 rather than 0 1023

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Question: Pizza Mizza has a complex capital structure to run its pizza business. It uses equity, preferred stock, and debt in the following proportions: 40%, 10%,

Pizza Mizza has a complex capital structure to run its pizza business.

It uses equity, preferred stock, and debt in the following proportions: 40%, 10%, and 50%, respectively.
The annual costs of equity, preferred stock, and debt equal 16%, 8%, and 5%, respectively.
Pizza Mizza falls into 29% corporate income tax bracket.

Calculate Pizza Mizza's average annual cost of running its pizza business, also known as the Weighted Average Cost of Capital. Your answer should be in %, not in decimals: e.g., 10.23 rather than 0.1023.

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