Solution-Computing the firm weighted average cost of capital

Computing the firm weighted average cost of capital

Reference no: EM13969902

Theresa's Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market price of $47 a share, and 30,000 shares of common stock valued at $56 a share. What weight should be assigned to the common stock when computing the firm's weighted average cost of capital?

47.11 percent
55.45 percent
66.16 percent
54.00 percent
62.08 percent

Reference no: EM13969902

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Computing the firm weighted average cost of capital

Reference no: EM13969902

Reference no: EM13969902

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