Business
Business, 21.08.2019 01:30, aiyanahill9218

Primacare has a capital structure that consists of $7 million of debt, $2 million of preferred stock, and $11 million of common equity, based upon current market values. the firm's yield to maturity on its bonds is 7.4%, and investors require an 8% return on the firm's preferred and a 14% return on primacare's common stock. if the tax rate is 35%, what is primacare's wacc? a) 7.21%b) 8.12%c) 10.18%d) 12.25%

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