What is the present wacc in percentage

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Reference no: EM132791076

BSA's capital structure consists of:

(1) 20% accounts payable and other non-interest-bearing debt,

(2) 35% bank debt on which they pay 10% interest,

(3) 5% preferred stock,

(4) 20% retained earnings, and

(5) 20% stock at par plus additional paid in capital.

Problem 1: They are in the 35% tax bracket. They have outstanding preferred stock with a P75 coupon rate for every P1,000 of par value. They have estimated their cost of common equity at 15.5%. What is their present WACC (IN PERCENTAGE %)?

Reference no: EM132791076

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