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Google currently has a 5 million common shares outstanding, and a 1 million preferred shares outstanding, and 100,000 bonds outstanding. Calculate Google Weighted Average Cost
Google currently has a 5 million common shares outstanding, and a 1 million preferred shares outstanding, and 100,000 bonds outstanding. Calculate Google Weighted Average Cost of Capital (WACC) if the corporate tax rate is 35%. (Using excel and making formulas viewable)
The average cost of equity of Google is 19.04%.
The cost of Googles preferred stocks if it is currently priced at $100 is 6%.
The pre-tax cost of debt of Google is 6.85%.
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