What is the firms weighted average cost of capital

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Casey’s Flower Shop has a cost of debt of 8 percent, a cost of equity of 12 percent, and a cost of preferred stock of 9 percent. The market capitalization of the common stock is $1,500,000. Preferred stock has a total market value of $200,000. The bond issue has a market value of $700,000. The company's tax rate is 34 percent. What is the firm's weighted average cost of capital?

11.77%

8.27%

10.46%

11.00%

9.79%

Reference no: EM131599608

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