How do determine the weighted average cost of capital

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A Company has the following capital Structure. The Kd is 5%, Kp is 8%, Ke 15% and Kr 13%

Problem 1: Determine the Weighted Average cost of capital according to book and market value.

Debt (book value$ 400000)(Market Value $ 380000) ,

Preference (book Value $100000(Market Value $ 110000) ,

Equity (book value $ 600000 (Market Value $ 1200000)

Retained Earnings (book Value $ 200000)

Reference no: EM132750307

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