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Calculate the firm wacc adjusted for taxes

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Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm's tax rate is 35%.

Question 1: Calculate the firm's WACC adjusted for taxes using the market information in the table. Round the answers to two decimal places in percentage form.

                                    The Number of Securities Outstanding            Selling price                    The Required Rate of Return

Bonds                                  1,338                                                   $1,024                             9.49%

Preferred Stocks                    5,367                                                    $82.90                           17.83%

Common Stocks                      1,298                                                     $134.39                          12.29%

Reference no: EM132559407

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