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Google Currently has 5 million common shares outstanding, and a 1 million preferred shares outstanding, and 100,000 bonds outstanding. Use your answers in #3, #4,
Google Currently has 5 million common shares outstanding, and a 1 million preferred shares outstanding, and 100,000 bonds outstanding. Use your answers in #3, #4, and #5 to calculate Google Weighted Average Cost of Capital (WACC) if the corporate tax rate is 35%.
#3: Average cost of equity is 13.76%
#4: Cost of preferred stocks is 6.0%
#5: Annual pre-tax debt is 6.85%
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