Solution-What is char wacc, You are given the market values

What is char wacc

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Reference no: EM133205119

You are given the market values of CHAR's capital structure as follow: $52 million in total common equity, $20 million in debt, and $8 million in preferred stock. CHAR's tax rate is 40%. After-tax cost of debt is 7%, cost of preferred stock is 5.5%, and cost of common equity is 15%. If CHAR's book value capital structure weights are 60% common equity, 25% debt, and 15% preferred stock, what is CHAR's WACC?

Reference no: EM133205119

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What is char wacc

Reference no: EM133205119

Reference no: EM133205119

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