IDNLearn.com: Where your questions meet expert advice and community insights. Explore thousands of verified answers from experts and find the solutions you need, no matter the topic.

Rogue Drafting has debt with a book value of $420,000, market value of $400,000, preferred stock with a book value of $50,000, market value of $100,000, and common stock with a book value of $100,000, market value of $500,000. If debt has a cost of 7%, preferred stock a cost of 10%, common stock a cost of 13%, and the firm has a tax rate of 30%, what is the WACC? (round to three decimal place, i.e., if 12.34%, then input 0.123; if 23.45%, input 0.235)

Sagot :