Problem:
Startlight co. It'd has the following target capital structure: 40% on debt, 10% on preferred stock, and 50% on common stock. Right now the YTM on the existing debt is 8%, required return in preferred stock is 6%, and required return on common equity is 10 %.
Required:
Question: What is the WACC of Startlight if it would like to finance a new investment project?
Note: Show supporting computations in good form.