What is the weighted average cost of capital

Reference no: EM133268897

Question - The Black Bird Company plans an expansion. The expansion is to be financed by selling $18 million in new debt and $199 million in new common stock. The before- tax required rate of return on debt is 9.87% percent and the required rate of return on equity is 17.32% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

Reference no: EM133268897

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