What is the wacc

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Question - GJ Industries has 10 million shares of common stock outstanding with a market price of $15.00 per share. The company also has outstanding preferred stock with a market value of $20 million, and 200,000 bonds outstanding, each with face value $2,000 and selling at 100% of par value. The cost of equity is 10%, the cost of preferred is 8%, and the cost of debt is 7.50%. If GJ's tax rate is 34%, what is the WACC?

Reference no: EM132144046

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