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What is the firm weighted average cost of capital

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Reference no: EM131970698

Parole Co. has 79,475 bonds outstanding that are selling at par value. The bonds yield 8 percent. The company also has 5.9 million shares of common stock outstanding. The stock has a beta of 1.37 and sells for $44.1 a share. The U.S. Treasury bill is yielding 3.7 percent and the market risk premium is 7 percent. Parole's tax rate is 37 percent. What is the firm's weighted average cost of capital?

Reference no: EM131970698

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