The following information is given for Boeing, whose target capital structure is 30% debt, 20%...
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The following information is given for Boeing, whose target capital structure is 30% debt, 20% preferred, and 50% common equity. The before tax cost of debt is 6.00%, the cost of preferred is 8%, and the cost of retained earnings is 12.00%. The firm will not be issuing any new stock. What is its WACC?
8.93%
9.40%
8.68%
9.85%
10.77%
The following information is given for Boeing, whose target capital structure is 30% debt, 20% preferred, and 50% common equity. The before tax cost of debt is 6.00%, the cost of preferred is 8%, and the cost of retained earnings is 12.00%. The firm will not be issuing any new stock. What is its WACC?
| 8.93% | ||
| 9.40% | ||
| 8.68% | ||
| 9.85% | ||
| 10.77% |
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