Find what is wacc for giambono company

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Problem 1: You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 13.00%. The firm will not be issuing any new stock. What is its WACC?

a.9.38%

b. 11.44%

c. 9.19%

d. 7.22%

e. 10.22%

Reference no: EM132763670

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