A company has a debt with a yield to maturity of 6.3%, a cost of equity
of 14.5%, and a cost of preferred stock of 9.2%. The market values of
its debt, preferred stock and equity are $15.2 million, $2.9 million,
and $20.6 million, respectively, and its tax rate is 35%.
What is the firm’s weighted average cost of capital (WACC)?
Click here for the solution: A company has a debt with a yield to maturity of 6.3%, a cost of equity of 14.5%, and a cost of preferred stock of 9.2%
