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Weighted average cost of capital for the firm

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Reference no: EM133116110

The company Ventas y Distribución S.A  has the following information:

  • Central Bank bonds yield 1.25% per year.
  • The company has an Equity of 300 million, Corporate Bonds for 200 million at a rate of 8% per year and a Bank Credit of 100 million at a rate of 9% per year.
  • The tax is 27%. The leveraged beta is 0.98.
  • The market risk premium is 11%.

What is the weighted average cost of capital for the firm?

Reference no: EM133116110

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