Question
Please describe step by step, how to calculate a question : Titan Mining Corporation has 15 million shares of common stock outstanding, 1,000,000 shares of
Please describe step by step, how to calculate a question :
Titan Mining Corporation has 15 million shares of common stock outstanding, 1,000,000 shares of 10 percent preferred stock outstanding. Titan Mining also has 220,000 bonds outstanding with par value $1,000 each and the bonds have 18years to maturity. The bond currently sell for 90 percent of par and has cost of debt before-tax of 12 percent. The common stock currently sells for $35 per share and has a beta of 1.25, the preferred stock currently sells for $90 per share,. The market risk premium is 12percent, T-bills are yielding 7 percent, and the firm's tax rate is 34 percent. What is the corporation weighted average cost of capital?
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