Rollins corporation is constructing its mcc schedule its


Rollins Corporation is constructing its MCC schedule. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its before-tax cost of debt is 12%. The firm could sell, at $100, preferred stock that pays a $12 annual dividend, but flotation costs of 5 percent would be incurred. Rollins' beta is 1.2, the risk-free rate is 10%, and the market rate of return is 15%. The firm's net income is expected to be $1 million, and its dividend payout ratio is 40 percent. The firm's marginal tax rate is 40 percent. How do I find WACC? I can’t figure out the steps

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Financial Management: Rollins corporation is constructing its mcc schedule its
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