What is abc weighted average cost of capital

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ABC has 203,908 shares of common stock outstanding at a market price of $36.9 a share. It just paid an annual dividend of $1.544 per share. The dividend growth rate is 4%. It also has 5,935 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 7% coupon, pay interest semiannually, and mature in 6 years. The bonds are selling at 98.8% of face value. The company's tax rate is 35%. What is ABC's weighted average cost of capital?

Reference no: EM133113033

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