MinMax Corp has the following capital structure: 55% equity (giving a return of 9%),10% preferred shares (with a yield of 6%),and 35% debt (with a coupon rate of 10% and yield to maturity of 6.5%).If there are no taxes,what is the firm's WACC?
A) 10.333%
B) 9.050%
C) 7.825%
D) 6.915%

Question

Quizplus · Accepted Answer

WACC = 0.55*9% + 0.10*6% + 0.35*6.5% = 0.07825 F1S1S1W1F1F1F10 7.825%

MinMax Corp Has the Following Capital Structure: 55% Equity (Giving