Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component Balance
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Question:
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.
Component | Balance Sheet Value | Market Value | Cost of Capital |
Debt | 5,000,000.00 | 6,850,000.00 | 8% |
Preferred Stock | 4,000,000.00 | 2,200,00.00 | 10% |
Common Stock | 2,000,000.00 | 5,600,000.00 | 13% |
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