What is the WACC on a pre-tax basis for a proposed construction project with the following...

Transcribed Image Text:

What is the WACC on a pre-tax basis for a proposed construction project with the following make-up: Total project cost is $8,000,000 A loan-to-cost (LTC) of 70% is provided with a fixed, interest-only interest rate of 4% Equity receives a 9% preferred return What is the WACC on a pre-tax basis for a proposed construction project with the following make-up: Total project cost is $8,000,000 A loan-to-cost (LTC) of 70% is provided with a fixed, interest-only interest rate of 4% Equity receives a 9% preferred return

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC on a pretax basis for this proposed construct... View the full answer