Adjusted WACC. ??Clark? Explorers, Inc., an engineering? firm, has the following capital? structure:?? Equity Preferred Stock Debt Market Price ?$56.14 ?$101.55 ?$954.28 Outstanding units 120,000 14,000 5,825 Book value ?$3,305,000 ?$1,438,000 ?$5,825,000 Cost of...

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Finance

Adjusted
WACC.
??Clark? Explorers, Inc., an engineering? firm, has thefollowing capital? structure:??
Equity
Preferred Stock
Debt
Market Price
?$56.14
?$101.55
?$954.28
Outstanding units
120,000
14,000
5,825
Book value
?$3,305,000
?$1,438,000
?$5,825,000
Cost of capital
15.81?%
12.01?%
10.9?%
. Using market value and book value? (separately, of? course),find the adjusted WACC for Clark Explorers at the following tax?rates:
a.35?%
b.30?%
c.15?%
d.10%

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Transcribed Image Text

AdjustedWACC.??Clark? Explorers, Inc., an engineering? firm, has thefollowing capital? structure:??EquityPreferred StockDebtMarket Price?$56.14?$101.55?$954.28Outstanding units120,00014,0005,825Book value?$3,305,000?$1,438,000?$5,825,000Cost of capital15.81?%12.01?%10.9?%. Using market value and book value? (separately, of? course),find the adjusted WACC for Clark Explorers at the following tax?rates:a.35?%b.30?%c.15?%d.10%

Equity	Preferred Stock	Debt
Market Price	?$56.14	?$101.55	?$954.28
Outstanding units	120,000	14,000	5,825
Book value	?$3,305,000	?$1,438,000	?$5,825,000
Cost of capital	15.81?%	12.01?%	10.9?%