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Calculate the weighted-average cost of capital

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Consider the following information for Federated Junkyards of America. - Debt: $65,000,000 book value outstanding. The debt is trading at 86% of book value. The yield to maturity is 9%. . Equity: 1,500,000 shares selling at $32 per share. Assume the expected rate of return on Federated's stock is 18%. . Taxes: Federated's marginal tax rate is Tc = 0.21. Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM133060544

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