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Judson enterprises has a capital structure (based on market

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Judson enterprises has a capital structure (based on market values) consisting of 40% debt, 10% preferred stock, and 50% common equity. Judson's long-term bonds have a before-tax YTM of 9%, its cost of preferred stock is 7.9%, and its cost of retained earnings is 12.5% if Judson's tax rate is 40%, what is its WACC?

  • 8.54%
  • 8.38%
  • 9.20%
  • 9.64%
  • 8.75%

Reference no: EM131010420

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