Weighed average cost of capital (WACC)

FratBro23
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%

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