What is wacc for bartlett company

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Problem 1: 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. 8.98%
b. 9.26%
c. 9.83%
d. 9.54%
e. 10.12%

Reference no: EM132959901

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