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Business, 18.12.2019 22:31 ninaaforever

Paw industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. the company also has outstanding preferred stock with a market value of $10 million, and 100,000 bonds outstanding, each with face value $1,000 and selling at 96% of par value. the cost of equity is 19%, the cost of preferred is 15%, and the cost of debt is 9%. if paw's tax rate is 34%, what is the wacc?

a. 10.14%
b. 10.38%
c. 12.51%
d. 14.33%

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