(Answered) Judson enterprises has a capital structure based on market

Accounting

Judson enterprises has a capital structure (based on market values) consisting of 40% debt, 10% preferred stock, and 50% common equity. Judson's long-term bonds have a before-tax YTM of 9%, its cost of preferred stock is 7.9%, and its cost of retained earnings is 12.5% if Judson's tax rate is 40%, what is its WACC?

8.54%
8.38%
9.20%
9.64%
8.75%

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