A company has the following capital structurea 1000, Ask an Expert

Finance

A company has the following capital structure.

A) 1000 preferred shares at $100 par value with a 6% yield.

B) 10,000 shares of common stock, current market value of $17 / share. The annual dividend is $0.67.

C) A 30 year bond issue with a total face value of $100,000, trading at par, with a coupon of 8%.

The company is in the 37% tax bracket.

What is the Weighted Average Cost of Capital for this company?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92172306

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