If the WACC for your firm is 7.45% and the target capital structure is 25% debt,...
If the WACC for your firm is 7.45% and the target capital structure is 25% debt, 5% preferred stock, and 70% common equity, what would the cost of raising an additional $1 be for your firm?
Select one:
a. $7.45
b. $25
c. 70%
d. $3.60
Homework Answers
WACC REPRESENTS COST OF RAISING MONEY
SO HERE THE COST WILL BE = $1 X 7.45% = $7.45
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