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6g1 Given the following information on Big Brothers, Inc. capital structure, compute the companys weighted average cost of capital (WACC). The companys marginal tax rate

6g1

Given the following information on Big Brothers, Inc. capital structure, compute the companys weighted average cost of capital (WACC). The companys marginal tax rate is 40%.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Type of Capital Percent of Capital Structure Before-Tax Component Cost
Bonds 41% 13.50%
Preferred Stock 11% 15.07%
Common Stock Please calculate it 14.01%

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