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Question 4 (5 points) XYZ corp. has 20,000 shares of common stocks outstanding that are currently traded for $13 per share and have a rate
Question 4 (5 points) XYZ corp. has 20,000 shares of common stocks outstanding that are currently traded for $13 per share and have a rate of return of 4.00%. They also have 4,000 shares of 5.00% preferred stocks that are selling for $69.5 per share. The preferred stock has a par value of $100. Finally, they have 7,000 bonds outstanding that mature in 11 years, have par value (face value) of $1,000, and sell for 97.5% of par. The yield-to- maturity on the debt is 4.30%. What is the XYZ's weighted average cost of capital if the tax rate is 21%? (Use two decimal places when solving this problem) Your
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