Need help with WACC finance question

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

The firm’s tax rate is 35%. Calculate the firm's WACC adjusted for taxes using the market information in the table. 

 The Number of Securities OutstandingSelling priceThe Required Rate of Return
Preferred Stocks5,732$56.9015.87%
Common Stocks1,579$90.5511.64%

Round the answers to two decimal places in percentage form.

Sep 28th, 2015

Thank you for the opportunity to help you with your question!

          The Number            of Securities          Outstanding Selling price The Required Rate of Return total value=price*number of securities outstanding                         rates adjusted for tax
Bonds 1,775 $1,179 11.33%   $2,092,725 7.36%
Preferred Stocks 5,732 $56.90 15.87%   $326,151 15.87%
Common Stocks 1,579 $90.55 11.64%   $142,978 11.64%
           $2,561,854  $     222,521.56
        WACC= 8.69%
I pasted results from excel,please note the heading must be moved 1 col. to the right.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 28th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
Sep 28th, 2015
Sep 28th, 2015
Oct 22nd, 2017
Mark as Final Answer
Unmark as Final Answer
Final Answer

Secure Information

Content will be erased after question is completed.

Final Answer