Targaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock,...

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Targaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent de

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Answer 1

Answer #1

Calculate the WACC as follows:

B C D E 81 Particulars Rate Weight Weighted rate 82 Equity 10% 70% 7.00% 83 Debt 4.62% 25% 1.16% Preferred stock 5% 0.25% 85

Formulas:

E 81 82 83 в с Particulars Rate Equity 0.1 Debt =6%*(1-23%) Preferred stock 0.05 WACC Cost of debt Weight Weighted rate 0.7 =

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Answer 2

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