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Sticky Web Inc. has 500,000 shares outstanding and 1,000 coupon bonds. The shares are selling for $1.50 per share, while the coupon bonds are selling
Sticky Web Inc. has 500,000 shares outstanding and 1,000 coupon bonds. The shares are selling for $1.50 per share, while the coupon bonds are selling for $980. The cost of equity is 18% and the pre-tax cost of debt is 10%. What is the weighted average cost of capital for Sticky Web Inc.? Assume a marginal tax rate of 35%.
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