Question
ABB Company has the following capital structure: Source of Capital Market Value (EGP) Cost Common Stock 25,000,000 18.5% Preferred stock 75,000,000 16.5% Bonds 155,000,000 12.5%
ABB Company has the following capital structure:
| Source of Capital | Market Value (EGP) | Cost |
| Common Stock | 25,000,000 | 18.5% |
| Preferred stock | 75,000,000 | 16.5% |
| Bonds | 155,000,000 | 12.5% |
Calculate the weighted average cost of capital for ABB Company taking into consideration that current Tax Rate is 25%.
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Cash Flow Stock Investing
Authors: Randall Stewart
1st Edition
1980883300, 978-1980883302
