Question
Consider the following balance sheet of a publicly held company: Cash $760,000 Long Term Debt $7,633,500 Receivables $1,250,000 Common Stocks $14,176,500 Inventories $2,225,000 Net Equipment
Consider the following balance sheet of a publicly held company: Cash $760,000 Long Term Debt $7,633,500 Receivables $1,250,000 Common Stocks $14,176,500 Inventories $2,225,000 Net Equipment $17,575,000 It is estimated that the yield to maturity on bonds are 9%. The company faces a marginal tax rate of 34%. What would be the weighted average cost of capital for this firm?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
