Rogers' Rotors has debt with a market value of $250,000,preferred stock with a market value of $50,000,and common stock with a market value of $750,000.If debt has a cost of 7%,preferred stock a cost of 9%,common stock a cost of 13%,and the firm has a tax rate of 30%,what is the WACC?
A)8.64%
B)9.12%
C)9.33%
D)10.88%

Question

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The Answer of Rogers' Rotors has debt with a market value of $250,000,preferred stock with a market value of $50,000,and common stock with a market value of $750,000.If debt has a cost of 7%,preferred stock a cost of 9%,common stock a cost of 13%,and the firm has a tax rate of 30%,what is the WACC?
A)8.64%
B)9.12%
C)9.33%
D)10.88%

Rogers' Rotors Has Debt with a Market Value of $250,000,preferred