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Calculate michalko weighted-average cost of capital

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Reference no: EM132072356

The following data pertains to Michalko Corp. Assuming that the risk-free rate is 4.2% and the market risk premium is 6.2%, calculate Michalko's weighted-average cost of capital.

  • Michalko Corp.
  • Total Assets$14,680
  • Interest-Bearing Debt$ 19,100
  • Average borrowing rate for debt11%
  • Common Equity:
  • Book Value$ 5,120
  • Market Value$25,700
  • Marginal Income Tax Rate40%
  • Market Equity Beta1.5

Reference no: EM132072356

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