Faces an average tax rate

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Suppose that MNINK Industries' capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 11.50 percent, 9.40 percent, and 8.00 percent, respectively.

What is MNINK's WACC if the firm faces an average tax rate of 34 percent?

Reference no: EM131272801

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