Question
An accountant for Stability Inc. must calculate the weighted average cost of capital of the corpora-tion using the following information. Interest Rate Accounts payable $35,000,000
An accountant for Stability Inc. must calculate the weighted average cost of capital of the corpora-tion using the following information.
| Interest Rate | ||
|---|---|---|
| Accounts payable | $35,000,000 | 0 |
| Long-term debt | 10,000,000 | 8% |
| Common stock | 10,000,000 | 15% |
| Retained earnings | 5,000,000 | 18% |
What is the weighted average cost of capital of Stability?
6.88%
8.00%
10.25%
12.80%
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Corporate Accounting Information Systems
Authors: Tony Boczko
1st Edition
0273684876, 978-0273684879
