Calculate costa weighted average cost of capital

Reference no: EM131963959

Question: The Costa Company's debt equity ratio is 0.6 using market values. The before tax cost of debt is 7% and cost of equity is 15%. The market value of common stock is RM8 million. Calculate Costa's weighted average cost of capital assuming no change in the current financing mix and no sale of additional common stock. The tax rate is 25%.

Reference no: EM131963959

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