Plasti-Tech Ltd. has a target capital structure of 55% by common stock, 10% by preferred stock, and 35% by debt. The com
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Plasti-Tech Ltd. has a target capital structure of 55% by common stock, 10% by preferred stock, and 35% by debt. The com
Plasti-Tech Ltd. has a target capital structure of 55% by common stock, 10% by preferred stock, and 35% by debt. The company's required return is 15% on the common stock, 10% on the preferred stock. Pasti-Tech has $500,000 face value bond issue outstanding with stated annual coupon rate of 6% and yield-to-maturity of 8%, currently quoted at 87.52% of the face value. The firm has tax rate 21%. What is Plasti-Tech's WACC?