Question: Question 3 Target % in Capital Structure Component Cost (pre-tax) Debt 35.00% 5.30% Preferred Stock 15.00% 8.57% Equity 50.00% 12.81% Tax Rate = 25.00% Based

Question 3

Target % in Capital Structure

Component Cost (pre-tax)

Debt

35.00%

5.30%

Preferred Stock

15.00%

8.57%

Equity

50.00%

12.81%

Tax Rate =

25.00%

Based on the information in the table, what is the firm's WACC?

Group of answer choices

9.35%

9.54%

9.83%

9.08%

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