What is maga inc wacc

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Question 1: Maga's target capital structure is 50% common stock, 10% preferred stock and 30% debt. Maga inc tax rate is 40%, the cost of preferred is 5%, the cost of debd is 8% and Maga's beta is 1,2, risk free rate 2% and the expected market rate is 2% and the expected market rate of return is 12%. What is Maga inc,'s WACC.

HINT: the expected return on Maga's stock is Maga's cost of equity

Reference no: EM132497910

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