Zombie corporation common stock has beta

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The Zombie Corporation’s common stock has a beta of 1.2. The risk-free rate is 4.8% and the expected return on the market is 11%. The company has an issue of preferred stock with a $4.2 stated dividend that is selling for $92 per share. The company’s cost of debt is 6% and its capital structure is 60% common stock, 35% debt, and 5% preferred stock. The average tax rate is 40%. What is the WACC?

Reference no: EM132053612

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