Solution-What is the company weighted average cost of

What is the company weighted average cost of capital

Reference no: EM133043740

Question - The Company B has $70M bank loans with interest rate of 9.5%. The Company also have $2.3M shares of common stock outstanding. The common stock has a Beta of 1.34 and sells for $40 a shares. The U.S. Treasury bill is yielding 3.8% and the return on the market is 11.2%. The coporate tax rate is 35%. What is the Company's weighted average cost of capital?

Reference no: EM133043740

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What is the company weighted average cost of capital

Reference no: EM133043740

Reference no: EM133043740

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