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Bob Ltd is subject to 30% income tax rate. Below is information about the capital structure of Bob Ltd Source of funds Market value Required

Bob Ltd is subject to 30% income tax rate. Below is information about the capital structure of Bob Ltd

Source of funds

Market value

Required rate of return

Long-term debt

10,000

6%

Preferred stock

50,000

8%

Common stock

40,000

10%

Required

Calculate Bob Ltd weighted-average cost of capital (WACC)

Place your answer in the table provided here below

Sources of funds

Market value

Required rate of return

Weights of market value

Weighted-average cost of capital

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