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Nacho Libre S.A. has 10,000,000 common shares outstanding that trade for $30.00 per share. The company has also issued one bond with a par value
Nacho Libre S.A. has 10,000,000 common shares outstanding that trade for $30.00 per share. The company has also issued one bond with a par value of $60,000,000 that currently trades at 105 percent of par. You observe that the company's required return on stock is 12.00 percent and the (after-tax) yield to maturity on its debt is 2.00 percent. What is the weighted average cost of capital? Write your answer as a percent, not a decimal, but don't include % sign.
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