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Cu 5: (2,5 dim) The company CCC has $70,000,000 bank loans with interest rate of 8.5 percent. The company also has 2.5 million shares of
Cu 5: (2,5 dim) The company CCC has $70,000,000 bank loans with interest rate of 8.5 percent. The company also has 2.5 million shares of common stock outstanding. The common stock has a beta of 1.3 and sells for $36 a share. The U.S. Treasury bill is yielding 4 percent and the return on the market is 12.2 percent. The corporate tax rate is 28 percent. What is the Company's weighted average cost of capital
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