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Business, 04.07.2020 19:01 bryantjorell

Bayou Hedge fund group's target capital structure includes 60 percent common stock, 25 percent debt, and the rest in the form of preferred stock. The group's cost of equity is 14.3 percent, its cost of preferred stock is 7.3 percent, and its cost of debt is nine percent. The relevant tax rate is 20 percent. What is the Bayou's Weighted Average Cost of Capital or WACC? a. 1107 percent b. 11.48 percent c. 9.06 percent d. 11.92 percent e. 10.53 percent

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