Preferred stock price 60 common stock growth rate 4 common


Here's some more info on a company:

Number of issuances:

Debt: 4000

Preferred Stock: 10,000

Common Stock: 200,0000

Bonds' YTM: 6% Beta: 1.2 Bond par value: $1,000

Preferred stock price: $60 Common Stock growth rate: 4% Common stock price: $45

Bond price: 104% of par Market risk premium: 12% Corporate tax rate: 35%

Preferred stock dividend: $9 Risk Free rate: 6% Bond Price: 104% of par

What is this company's WACC?

A. 10.5%

B. 13.3%

C. 15.2%

D. 17.2%

E. 18.7%

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Accounting Basics: Preferred stock price 60 common stock growth rate 4 common
Reference No:- TGS01362423

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