Question: Question 4 Luke Skywalker Berhad has a target capital structure of 6 0 % common stock, 5 % preferred stock, and 3 5 % debt.

Question 4
Luke Skywalker Berhad has a target capital structure of 60% common stock, 5% preferred stock, and 35% debt. Its cost of equity is 14%, the cost of preferred stock is 6%, and the cost of debt is 8%. The relevant tax rate is 35%. What is Luke Skywalker Berhad's WACC?
Use this formula
Weighted Average Cost of Capital (WACC):
kwacc=wdkd(1-Tc)+wpskps+wcskcs+wncskncs
Question 4 Luke Skywalker Berhad has a target capital structure of

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