1) ADSE Co. has $40 million of debt, $100 million of common stock and $10 million of preferred stock on its balance sheet. The required return on these are 6%, 12% and 8% respectively. What is the WACC if their average corporate tax rate is 34%?
2) You are saving $150 per month. How much will you have saved in two years if the annual rate of return is 6% with monthly compounding?
Please explain and solve how to do it