According to market values-debt-preferred and equity

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Reference no: EM13911549

According to market values, 25% debt, 10% preferred and 65% equity. The YTM on the firm's debt is currently 7.5% and the firm's marginal tax rate is 35%. The firm's preferred stock is selling for $101 and has an annual dividend of $10. The firm's stock beta is 1.1 and the current risk-free rate is 4%. The overall market rate of return is 12% and the firm plans on using retained earnings exclusively. What is the firms’ WACC?

Reference no: EM13911549

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