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What is frozen inc wacc

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Question 1: Frozen, Inc.'s capital structure includes debt, preferred stock and equity. The market value of its preferred stock is $55 million. The book and market values of its debt outstanding are $100 million and $250 million, respectively. Frozen has 5 million shares of common stock outstanding with a current market price of $73 per share. Its book value of equity is $189 million. You also have the following information: Cost of Preferred stock = 11.5%; Cost of Debt = 7%; Cost of Equity = 13%; and Tax Rate = 45%. What is Frozen, Inc.'s WACC?

Option A. 11.91%

Option B. 9.46%

Option C. 7.00%

Option D. 15.00%

Reference no: EM132584783

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