Question
20. Delta Lighting has 30,000 shares of common stock outstanding at a market price of $25 a share. This stock was originally issued at
20. Delta Lighting has 30,000 shares of common stock outstanding at a market price of $25 a share. This stock was originally issued at $31 per share. The firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 96 percent of par. The cost of equity is 13 percent while the after-tax cost of debt is 6.9 percent. The firm has a beta of 1.48 and a tax rate of 30 percent. What is the weighted average cost of capital?
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Horngrens Financial And Managerial Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
6th Edition
978-0134486840, 134486838, 134486854, 134486846, 9780134486833, 978-0134486857
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