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Adjusted WACC. Clark​ Explorers, Inc., an engineering​ firm, has the following capital​ structure:      Equity Preferred Stock...

Adjusted WACC. Clark​ Explorers, Inc., an engineering​ firm, has the following capital​ structure:  

  

Equity

Preferred Stock

Debt

Market Price

​$66.75

​$192.68

​$1045.55

Outstanding units

104,000

6,000

6,667

Book value

​$2,799,000

​$1,125,000

​$6,667,000

Cost of capital

15.74​%

11.12​%

9.1​%

Using market value and book value​ (separately, of​ course), find the adjusted WACC for Clark Explorers at the following tax​ rates:

a. 40​%

b. 30​%

c. 15​%

d. 10​%

a. What is the market value adjusted WACC for Clark Explorers at a tax rate of 40​%?

​ (Round to two decimal​ places.)

What is the book value adjusted WACC for Clark Explorers at a tax rate of 40​%?

​ (Round to two decimal​ places.)

b. What is the market value adjusted WACC for Clark Explorers at a tax rate of 30​%?

​ (Round to two decimal​ places.)

What is the book value adjusted WACC for Clark Explorers at a tax rate of 30​%?

​ (Round to two decimal​ places.)

c.What is the market value adjusted WACC for Clark Explorers at a tax rate of 15​%?

​ (Round to two decimal​ places.)

What is the book value adjusted WACC for Clark Explorers at a tax rate of 15​%?

​ (Round to two decimal​ places.)

d. What is the market value adjusted WACC for Clark Explorers at a tax rate of 10​%?

​ (Round to two decimal​ places.)

What is the book value adjusted WACC for Clark Explorers at a tax rate of 10​%?

​ (Round to two decimal​ places.)

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