What is chi wacc

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Reference no: EM132556121

Question 1: You are given the market values of CHI's capital structure as follow: $52 million in total common equity, $20 million in debt, and $8 million in preferred stock. CHI's tax rate is 40%. After-tax cost of debt is 7%, cost of preferred stock is 5.5%, and cost of common equity is 15%. If CHI's book value capital structure weights are 60% common equity, 25% debt, and 15% preferred stock, what is CHI's WACC?

Reference no: EM132556121

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