(Answered) Finance waccquestiongarden tools inc has bonds preferred

Finance

Finance: WACC

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Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm's tax rate is 35%.

Calculate the firm's WACC adjusted for taxes using the market information in the table.

	The Number of Securities Outstanding	Selling price	The Required Rate of Return
Bonds	1,310	$1,170	10.15%
Preferred Stocks	5,673	$83.97	15.07%
Common Stocks	1,026	$114.10	16.24%

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