Calculate michalko weighted-average cost of capital

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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: EM132073415

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