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    WACC

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    Reactive Industries has the following capital structure. Its corporate tax rate is 35 percent. What is its WACC?

    SECURITY MARKET VALUE REQUIRED RATE OF RETURN
    DEBT $20 Million 6%
    PREFERRED STOCK $10 Million 8%
    COMMON STOCK $50 Million 12%

    © BrainMass Inc. brainmass.com March 4, 2021, 6:10 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/33213

    Solution Preview

    WACC= weightage of common stock x cost of common stock + weightage of preferred ...

    Solution Summary

    The solution calculates WACC

    $2.19

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