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15. Radon Inc, is financing its new invention with issuance of 10 shares of 6 years ed stock 4.5%coupon bond with after tax cost of
15. Radon Inc, is financing its new invention with issuance of 10 shares of 6 years ed stock 4.5%coupon bond with after tax cost of debt of 6%, 60 shares of prefer with dividend $2.5 and return of 10%, and 800 shares of common equity at current price of $15 per share. If its common stock has beta 2.5 and long-term riskfree rate is 3% and market risk premium is 6%. What is the weighted Average Cost (7 points) of Capital given its tax rate is 30%? Ignore floatation costs
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