turnbull company is considering a project that requires an initial investment of $270,000.00. the firm will raise the $270,000.00 in capital by issuing $100,000.00 of debt at a before-tax cost of 9.60%, $30,000.00 of preferred stock at a cost of 10.70%, and $140,000.00 of equity at a cost of 13.50%. the firm faces a tax rate of 40%. the wacc for this project is .

Respuesta :

That is 30,000 worth of common equity. That's one hundred thousand forty,000 that is adequate to To Lock seventy,000. currently, next, we'll realize the wait of depth, thus wait of depth.

The formula is worthy of death. That's one luck divided by Total capital worth. That's to lock seventy,000 as you'll see on top. Thus in resolution, this may get zero.3704 as our weight of death. Currently, we'll realize with of most well-liked equity. Thus, we'll take the foremost worth of the most well-liked equity. That is 30,000 given to the U.S. divided by the total capital worth that we've got calculated on top of.

That's to lock seventy,000. currently, on resolution, this may get zero 1111. this is often our weight of most well-liked equity. Currently, moving ahead, we'll conclude weird off common equity; a little bit of common equity is adequate to the worth of common equity. That's one hundred forty thousand,000 divided by Total capital worth. That's to lock seventy,000 is equal to zero.5185.

To learn more about total capital worth, visit here

https://brainly.com/question/28204543

#SPJ4

ACCESS MORE