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NBChas 13,659 shares of common stock outstanding at a market price of $28.4 a share. It pays an annual dividend of $4.8 per share forever.
NBChas 13,659 shares of common stock outstanding at a market price of $28.4 a share. It pays an annual dividend of $4.8 per share forever. It also has 189 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 14% coupon, pay interest semiannually, and mature in 16 years. The bonds are trading to yield at 9%. The company's tax rate is 28%. What is NBC's weighted average cost of capital?
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