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What should be the company required rate of return

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Question - Priscilla Aidoo has gone public with her Shiloh Enterprise restaurant chain. Her current capital structure is as follows: 10,000 shares of common stock at $20 per share at a cost of 14%; 3,200 shares of preferred stock at $40 per share at a cost of 11%; and 600 bonds at current market value of $980 each at a before-tax cost of 9%. If her corporate tax rate is 22%, what should be the company's required rate of return?

Reference no: EM132945909

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