What is the big company weighted average cost of capital

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Reference no: EM131927321

Big Company has a target capital strucure of 35% debt, 5% preferred stock and 60% equity. The company has estimated its cost of debt (rd) is 8%, cost of preferred stock (rp) is 10.2% and its Cost of Equity (rs) is 12.2%. The company's tax rate is 40%.

What is the Big Company's Weighted Average Cost of Capital (WACC)?

Big Company's Weighted Average Cost of Capital (WACC) is:

Round to 2 decimal points.

Reference no: EM131927321

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