Suppose that TNT, Inc. has a capital structure of 43 percent equity, 23 percent preferred stock, and 34 percent debt. If the after-tax component costs of equity, preferred stock and debt are 15.4 percent, 10 percent and 7 percent, respectively, what is TNT's WACC if the firm faces an average tax rate of 21 percent?
A) 9.45 percent
B) 11.30 percent
C) 10.64 percent
D) 8.93 percent

Question

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The Answer of Suppose that TNT, Inc. has a capital structure of 43 percent equity, 23 percent preferred stock, and 34 percent debt. If the after-tax component costs of equity, preferred stock and debt are 15.4 percent, 10 percent and 7 percent, respectively, what is TNT's WACC if the firm faces an average tax rate of 21 percent?
A) 9.45 percent
B) 11.30 percent
C) 10.64 percent
D) 8.93 percent

Suppose That TNT, Inc