Question: Question 2 4 pts Questions Al-A2 are based on the information that follows. To*9% and rog 15% are the capital cost components of debt (pre-tax)
Question 2 4 pts Questions Al-A2 are based on the information that follows. To*9% and rog 15% are the capital cost components of debt (pre-tax) and preferred stock. The firm's capital structure is comprised of Debt = $700. Preferred Stock-$300 and Common Equity=$1,000, WACC IS 9.64%. The corporate tax rate is 40%. A2 What is the new WACC after the capital structure is changed by increasing total common equity to $2,000, assuming that all capital component costs are unchanged? (a) 9.27% (5) 10.82% Id 10.09% (d) 11.43% le) 9.79% OD . Od
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