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General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital. Market value of common stock
General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital. Market value of common stock is $10 million.Market value of long-term debt is $90 million. The corporate tax rate is 35%. Source of Capital After-Tax Cost Long-term debt 89 Common stock equity The weighted average cost of capital using market value weights is O 11.7 percent 0 6.58 percent 0 9.10 percent 0 17.5 percent
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