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Consider the following information for Barrymore Corporation. - Debt: $68,000,000 book value outstanding. The debt is trading at 89% of book value. The yield to
Consider the following information for Barrymore Corporation. - Debt: $68,000,000 book value outstanding. The debt is trading at 89% of book value. The yield to maturity is 11%. - Equity: 1,800,000 shares selling at $35 per share. Assume the expected rate of return on Barrymore's stock is 20%. - Taxes: Barrymore's marginal tax rate is Tc=0.21. Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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