Question
SOLVE ASAP PLEASE *********Your company does not use preferred stocks. The common stock has a beta of 1.6. The market risk premium is 8%. The
SOLVE ASAP PLEASE
*********Your company does not use preferred stocks.
The common stock has a beta of 1.6.
The market risk premium is 8%.
The risk-free rate is 2%.
The weight of equity is 0.4.
The weight of debt is 0.6.
The pretax cost of debt is 15%.
The tax rate is 20%.
What is the weighted average cost of capital?
| A. | 13.12% | |
| B. | 15.31% | |
| C. | 15.68% | |
| D. | 16.54% |
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
