Question on WACC for finance

Sep 25th, 2015
DreamIt
Category:
Business & Finance
Price: $5 USD

Question description

Given the following information on Big Brothers, Inc. capital structure, compute the company’s weighted average cost of capital (WACC). The company’s marginal tax rate is 40%.

Round the answer to two decimal places in percentage form. 

Type of CapitalPercent of Capital StructureBefore-Tax Component Cost
Bonds41%13.46%
Preferred Stock14%15.89%
Common StockPlease calculate it17.73%

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Cornell University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

5 Reviews


Summary
Quality
Communication
On Time
Value
ashleyisgod
Nov 30th, 2016
" Top quality work from this guy! I'll be back! "
Molly_Moon
Nov 7th, 2016
" AMAZING as always! "
Hemapathy
Oct 16th, 2016
" all I can say is wow very fast work, great work thanks "
BlueOcean
Oct 2nd, 2016
" Awesome! Exactly what I wanted. "
kevin12622
Sep 23rd, 2016
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors