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Thorstein Company has a targeted capital structure of 45% debt, 5% preferred stock, and 50% common equity. The company's
Posted: Tue Jan 18, 2022 1:00 pm
by answerhappygod
- Thorstein Company Has A Targeted Capital Structure Of 45 Debt 5 Preferred Stock And 50 Common Equity The Company S 1 (29.06 KiB) Viewed 43 times
Thorstein
Company has a targeted capital structure of 45% debt, 5% preferred stock, and 50% common equity. The
company's cost of debt is 8.5%, preferred stock 7% and common equity 11%. They have a marginal tax rate of 25%. Which of the following most closely approximates Thorstein's WACC? O a. 8.7% O b. 9.4% O c 11.9% O d. 12.2% O e 19.9%