Respective costs for the components


What is the WACC for a firm with 40% debt, 20% preferred stock and 40% equity if the respective costs for these components are 9.23% before-tax, 12% after-tax, and 18% before-tax? The firm's tax rate is 35%..

a) 9.48%

b) 11.16%

c) 12.00%

d) 15.60%

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Business Management: Respective costs for the components
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