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BlockOut Co. has 79,594 bonds outstanding that are selling at par value. The bonds yield 8 percent. The company also has 5.6 million shares of
BlockOut Co. has 79,594 bonds outstanding that are selling at par value. The bonds yield 8 percent. The company also has 5.6 million shares of common stock outstanding. The stock has a beta of 1.39 and sells for $47.7 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 7.5 percent. Blackout's tax rate is 39 percent. What is the firm's weighted average cost of capital? (Enter answer in percents.)
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