What is phil weighted average cost of capital

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Reference no: EM132014476

Phil’s Flip House has 210,000 shares of common stock outstanding at a market price of $36 a share. Last month, Phil's paid an annual dividend in the amount of $1.35 per share. The dividend growth rate is 3%. Phil's also has 6,000 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 6.8% coupon, pay interest semi-annually, and mature in 11 years. The bonds are selling at 99% of face value. The company's tax rate is 33%.

What is Phil's weighted average cost of capital? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

Reference no: EM132014476

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