Calculate WACC given the following information (BT means before tax). Total Value of Common Stocks (S)...

Calculate WACC given the following information (BT means before tax).

Total Value of Common Stocks (S)	$800,000	Cost of Equity (common stocks, Ks)	16%
Total Value of Preferred Stocks (P)	$200,000	Cost of Preferred stock (Kp)	12%
Total Value of Debt (D)	$400,000	Before Tax Cost of Debt (BT Kd)	6%
		Tax rate (T)	30%

none of the answers is correct

19.95%

9.04%

13.56%

12.06%

American Electric Power is planning to purchase mac or pc computers for its business operations from Sweden. The cost of mac or pc computers is 10,000 Swedish kronas. How much in U.S. dollars will American Electric Power pay if $1 is equal to 6.7797 Swedish kronas (Swedish krona/$)?

$2,644

none of the answers is correct

$1,475

$1,686

$1,180

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 4 months ago

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