The firm faces a tax rate of 40 what will be the wacc for, Financial Management

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The firm faces a tax rate of 40 what will be the wacc for

Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in capital by issuing $750,000 of debt at a before-tax cost of 9.6%, $78,000 of preferred stock at a cost of 10.7%, and $880,000 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the WACC for this project?

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Financial Management: The firm faces a tax rate of 40 what will be the wacc for

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