Question compute the wacc of a firm that currently has 2, Ask an Expert

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Question: Compute the WACC of a firm that currently has $2 million in debt and $3 million in equity and $1 million in preferred stock. The current yield to maturity on the firms debt is 6%. Equity holders require a 9% return and preferred stock holders require a 7.664% return. The current tax rate that applies to the firm is 30%. Write your answer as a decimal.

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