Firm present weighted average cost of capital-edwin company

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Edwin Company was recently having mixed capital structure with equity and debt with given amount in each capital as market value terms:

Debt                       $75,600

Preferred stock              $43,400

Common stock            $ 24,5000

The preferred stock pays at 15 percent .The cost on debt after tax is considered to be as 14 percent on overall. Corporation offer 750 shares. Edwin expected that the cost of common stock  to be 6 percent in the coming year. Compute the firm's present weighted average cost of capital.

Reference no: EM132596538

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