Company weighted average cost of capital

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Reference no: EM131492732

Given the following information, Big BrothersInc capital structure computes the company's weighted average cost of capital (WACC). The company marginal tax rate is 40%.

Type of Capital Percent of Structure Before tax component Cost

Bonds 46% 18.22%

Preferred stock 18% 12.%

Common stock Please calculate 15.86%

Reference no: EM131492732

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