What is the firm weighted average cost of capital

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ABC Radars has 46000 bonds outstanding that are selling at 1297.The bonds outstanding have 23 years to maturity and pay an annual coupon payment of 9%. The company also has 752000 shares of 9 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $ 6 a share. The common stock has a beta of 1.07 and sells for $57 a share. The U.S. Treasury bill is yielding 5 percent and the return on the market is 11.7 percent. The corporate tax rate is 39 percent. What is the firm's weighted average cost of capital?

Reference no: EM132863191

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