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What is its WACC

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Question - Bartlett Company's 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 common using reinvested earnings is 12.75%. The firm will not be issuing any new stock. You were hired as a consultant to help determine their cost of capital. What is its WACC?

a. 9.54%

b. 9.26%

c. 8.98%

d. 9.83%

e. 10.12%

Reference no: EM133110052

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