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What is its wacc

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Question - 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 11.50%. The firm will not be issuing any new stock. What is its WACC?

a. -7.92%

b. -6.70%

c. -8.87%

d. -7.66%

e. -8.70%

Reference no: EM132765139

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