What will be the firm weighted average cost of capital

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Reference no: EM13270223

Marco Plumbing Supply has a pre-tax cost of debt of 7.6 percent, a cost of equity of 12.4 percent, and a cost of preferred stock of 8.5 percent. The firm has 410,000 shares of common stock outstanding at a market price of $19 a share. There are 30,000 shares of preferred stock outstanding at a market price of $31 a share. The bond issue has a face value of $550,000 and a market quote of 98.0. The company's tax rate is 32 percent. What is the firm's weighted average cost of capital?

10.12 percent
10.33 percent
11.31 percent
11.59 percent
12.60 percent

Reference no: EM13270223

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