Using the information in the two figures below calculate the WACC for Ciena Capital Structure (Millions of USD) Market Cap ST Debt LT Debt Pref. Eqty Total 5,940.9 78.7% 28.4 0.4% 1,576.7 20.9% 0.0 0.0% 7,545.9 100.0% Ciena Corp Cost of Capital - Current Market Value 3) Equity 4) Debt Cost (A-T) 5) Preferred Equity WACC Weight Cost 78.7% 11.5% 21.3% 5.1% 0.0% 0.0%

Using the information in the two figures below calculate the WACC for Ciena Capital Structure (Millions of USD) Market Cap ST Debt LT Debt Pref. Eqty Total 5,940.9 78.7% 28.4 0.4% 1,576.7 20.9% 0.0 0.0% 7,545.9 100.0% Ciena Corp Cost of Capital - Current Market Value 3) Equity 4) Debt Cost (A-T) 5) Preferred Equity WACC Weight Cost 78.7% 11.5% 21.3% 5.1% 0.0% 0.0%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt,...

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