What is the weighted average cost of capital for project

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A company wishes to raise funds million from a bank at 6% per year cora project common stock. The stock price is 15 d share (ignore growth effects). Retainars per share eeds 12 million. It decides to borrow 4 nthly. It will issue 3 million worth of re with annual earnings of 75 cents per 2. it mo a bond issuing with a quarterly dividen 96. arnings will be us etained Earninnd page used for 2 million. The last 3 million will ent and 6% annual rate. The effective tax rate for the company is 38%. What is the weighted average cost of capital for this project?

Reference no: EM131911674

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