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Question 3 4 pts A company's balance sheet has $45 million of noncallable long-term debt with a coupon rate of 7.00% and a yield
Question 3 4 pts A company's balance sheet has $45 million of noncallable long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return is 14.00%; and the firm's tax rate is 40%. What is the Weighted Average Cost of Capital in percentage terms? (DO NOT INCLUDE THE % SYMBOL IN YOUR ANSWER: 1 or 2 Decimal Places)
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