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Business, 18.12.2019 05:31 murarimenon

Tj industries has 7 million shares of common stock outstanding with a market price of $20.00 per share. the company alsohas outstanding preferred stock with a market value of $10 million, and 100,000 bonds outstanding, each with face value$1,000 and selling at 95% of par value. the cost of equity is 12%, the cost of preferred is 10%, and the cost of debt is6.45%. if us tax rate is 34%, what is the wacc? a. 8.92%b. 9.76%c. 1259%d. 13.43%

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