Suppose that b2b inc has a capital structure of 37 percent


Suppose that B2B, Inc., has a capital structure of 37 percent equity, 18 percent preferred stock and 45 percent debt.

Assume the before-tax component cost of equity, preferred stock, and debt are 14.5 percent, 11.0 percent, and 9.5 percent respectively.

What is B2B's WACC it the firm faces an average tax rate of 30 percent? (Round your answer to 2 decimal places)

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Financial Management: Suppose that b2b inc has a capital structure of 37 percent
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