What is the firm weighted average cost of capital

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Queen Industrial Supply has a pretax cost of debt of 4.5 percent, a cost of equity of 17.20 percent, and a cost of preferred stock of 8.35 percent. The firm has 250,000 shares of common stock outstanding at a market price of $84 a share. There are 34,000 shares of preferred stock outstanding at a market price of $52 a share. The bond issue has a face value of $1,200,000 and a market quote of 124.5. The company's tax rate is 34 percent. What is the firm's weighted average cost of capital?

Reference no: EM131932251

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