Solution-Concept of weighted average cost of capital

Concept of weighted average cost of capital

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Reference no: EM131361154

Suppose a firm raises $25 million dollars by issuing debt at a cost of 5.5%, raises $13 million by issuing common stock at a cost of 8.2% and raises an additional $8 million by issuing preferred stock at a cost of 11.1%. What is the average cost of capital per dollar raised (this is similar to the concept of weighted average cost of capital in your finance classes)? (please round your answer to 1 decimal place)

Reference no: EM131361154

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Concept of weighted average cost of capital

Reference no: EM131361154

Reference no: EM131361154

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