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Var places. You will need that level of precio U Question 8 3.48 pts Pacific...

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Var places. You will need that level of precio U Question 8 3.48 pts Pacific Airlines uses only debt and common equity. It can borrow unlimited amounts at an interest rate of 10% as long as it finances at its target capital structure, which calls for 40% debt and 60% common equity. Its tast dividend was $2.25, its expected constant growth rate is 5% and its common stock sells for $35. New shares can be sold at a flotation cost of 15% and Pacific Airlines is in the 35% tax bracket. What is their WACC it all common equity is from newly issued shares? 10.36% 7.36% O 5.83% 9.6596 Next Previous Su Quiz saved at 5:30pm

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