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Riley's Enterprises has a capital structure of 62.5% equity and 37.5% debt. The firm does not issue preferred stock and the tax rate is 35%.
Riley's Enterprises has a capital structure of 62.5% equity and 37.5% debt. The firm does not issue preferred stock and the tax rate is 35%. The cost of equity is 14.5% and the after-tax cost of debt is 4.8%. What is the weighted average cost of capital? Select one: a. 10.46 percent b. 11.38 percent c. 10.86 percent d. 11.57 percent e. 10.67 percent
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