(solution) Reactive Industries has the following capital structure. Its

(solution) Reactive Industries has the following capital structure. Its

Reactive Industries has the following capital structure. Its corporate tax rate is 20%.

 

Security Market Value Required Rate
of Return
  Debt $20 million        2%         
  Preferred stock 30 million        4            
  Common stock 50 million        8            

 

What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

  WACC  %