Find what is maga inc wacc

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Reference no: EM132520757

Maga's target capital structure is 60% common stock, 10% preferred stock and 30% debt.

Maga Inc.'s tax rate is 40%, the cost of preferred stock is 5%, the cost of debt is 8% and Maga's beta is 1.2, risk free rate is 2% and the expected market rate of return is 12%

Question 1: What is Maga Inc.'s WACC

HINT: the expected return on Maga's stock is Maga's cost of equity

Reference no: EM132520757

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