Company weighted average cost of capital

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Reference no: EM133057124

Williams, Inc., has compiled the following information on its financing costs:

Types of Financing

Book Value

Market Value

Cost

Short-term debt

$14,412,449

$14,463,713

4.5%

Long-term debt

$26,295,085

$29,478,821

7.5%

Common Stock

$10,208,538

$74,010,544

16.6%

The company is in the 22% tax bracket.

What is the company's weighted average cost of capital using market value weights?

Reference no: EM133057124

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