Rivington company is thinking about expanding and wants to

Reference no: EM13623061

Rivington Company is thinking about expanding and wants to calculate their WACC. Assume their capital structure consists of 45% common stock, 20% preferred stock, and 35% debt. Further, analysts predict that their future cost of debt will be 5%. The current cost of equity is 12% and the cost of preferred stock is 8%. The firm's tax rate is 30%. If the market risk premium is 9% and the risk free-rate is 3%, what is Rivington's WACC?

Reference no: EM13623061

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