Shaw Communications is currently financed with 30% equity,10% preferred stock,and 60% debt.It has a cost of equity capital of 11%,a cost of preferred stock of 7.5%,and its pretax cost of debt is 6%.If the firm has a tax rate of 30%,what is Shaw's WACC?
A) 7.57%
B) 8.17%
C) 5.82%
D) 6.57%
E) 7.65%
Correct Answer:
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