What is weighted average cost of capital

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Nacho Libre S.A. has 8,000,000 common shares outstanding that trade for $35.00 per share. The company has also issued one bond with a par value of $80,000,000 that currently trades at 90 percent of par. You observe that the company's required return on stock is 12.00 percent and the (after-tax) yield to maturity on its debt is 2.00 percent. What is the weighted average cost of capital?

Reference no: EM132020361

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