Question: vegan Smith: Attempt 1 > Question 9 (5 points) You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt,

vegan Smith: Attempt 1 > Question 9 (5 points) You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred stock, and 45% common equity. The cost of debt is 9.00%, cost of preferred stock is 7%, and cost of common equity is 12.75%. The tax rate is 40%. What is its WACC? 1) 9.12% 2) 8.81% 3) 8.95% 4) 8.68% - 5) 8.73%

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