SushiMagic
SushiMagic
17.12.2021 • 
Business

company has a cost of common stock of 12.5 percent, a cost of preferred stock of 10%, the YTM on the company's bonds is 3 percent, the coupon rate is 5%, and the tax rate is 21 percent. Suppose the ratio of market value of common stock over total firm value is .6, while the ratio of the market value of bond over the market value of the preferred stock is 0.8. What is the weighted average cost of capital

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