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Here is some information about Stokenchurch Inc.. Beta of common stock = 1.2 Treasury bill...

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Accounting

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Here is some information about Stokenchurch Inc.. Beta of common stock = 1.2 Treasury bill rate=4% Market risk premium = 7.5% Yield to maturity on long-term debt = 6% Book value of equity = $440 million Market value of equity = $880 million Long-term debt outstanding = $880 million Corporate tax rate = 21% What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. WACC 8.45 % Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%. Required Rate of Return Security Debt Preferred stock Common stock Market Value $ 20 million 10 million 50 million 12 What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. WACC 7.90 %

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