What’s is the firm’s WACC
June 7th, 2024
What’s is the firm’s WACC to my question?MV Corporation has a debt with market value of $100 million, common stock with a book value of $100 million, and preferred stock worth $20 million outstanding. Its common equity trade at $50 per share, and the firm has 6 million shares outstanding. If the before cost of debt is 10% and the risk free rate is 2 %, cost of preferred stock is 6% and the market return is 19%, with a beta of 1.6, what is this firm’s WAAC?