FIN 571 TUTOR Motivated Minds/fin571tutor.com FIN 571 TUTOR Motivated Minds/fin571tutor.com | Page 73

d. debt total $5,000,000
e. preferred stock current market value $10,000,000
f. common stock and retained earnings total value $20,000,000
Please calculate the pre-tax weighted average cost of capital (WACC) for
your company.
(10 points)
8. Your company’s marginal income tax rate is 40%. Please calculate the
post tax WACC from the information provided in problem 7. (10 points)
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FIN 571 Week 5 Learning Team Reflection
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Activity.
Discuss some of the corporate finance challenges faced by this
company.
Write a 350-700 word summary of your discussion.
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