Multiple Choice
FDR Industries has 50 million shares of stock outstanding selling at $30 per share and an issue of $200 million in 9.5 percent, annual coupon bonds with a maturity of 10 years, selling at 97 percent of par ($1,000) . If FDR's weighted average tax rate is 21 percent and its cost of equity is 16 percent, what is FDR's WACC?
A) 12.75 percent
B) 15.07 percent
C) 14.88 percent
D) 15.11 percent
Correct Answer:
Verified
Correct Answer:
Verified
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