Calculate its weighted average cost of capital

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Reference no: EM131835047

Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in? this, compute the cost of capital for the firm for the? following:

A bond that has a $1 000 face value? (par value) and a contract or coupon interest rate of 12.4 % that is paid? annually. The bond is currently selling for a price of $ 1,120 and will mature in 10 years. The? firm's tax rate is 30%.

The? after-tax cost of debt from the firm is ___%. (Round to two decimal? places.

Reference no: EM131835047

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