UNIT 7 University Books Company provided the following data: Target capital structure: 50% debt, 0%

UNIT 7 University Books Company provided the following data: Target capital structure: 50% debt, 0% preferred, and 50% common equity. The after-tax cost of debt is 7.500%, and the cost of common equity is 12.00%. What is the firm’s WACC? (Points: 8)

10.00%  9.00%  9.75% 9.50%  9.25%  SOLUTION