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6G-1 Given the following information on Big Brothers, Inc. capital structure, compute the companys weighted average cost of capital (WACC). The companys marginal tax rate

6G-1

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 58% 8.44% Preferred Stock 10% 17.82% Common Stock Please calculate it 17.25%

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