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What is bbc weighted average cost of capital

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CDC's equity beta is 1.4. It has 2,806 shares of common stock outstanding at a market price of $24.5 per share. It also has 37 bonds outstanding with face value of $1,000 per bond that are trading at 6.6% yield to maturity. The bonds carry a 9% coupon (paid semiannually), and mature in 8 years. The risk-free rate is 2.4%, the expected market return is 12.7% and the company's tax rate is 31%. What is BBC's weighted average cost of capital?

Reference no: EM133068565

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