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suppose firms bonds have a yield of 5.78%, the required return on the preferred stock is 5.04%, and it's required rate on common stock is

suppose firms bonds have a yield of 5.78%, the required return on the preferred stock is 5.04%, and it's required rate on common stock is 9.1%. If the sources of capital are weighted .08, .28, and .64 respectively, and the firms tax rate is 28.96%, what is the firms weighted average cost of capital? image text in transcribed
Suppose a firm's bonds have a yield of 5.78%, the required return on preferred stock is 5,04%, and its required retum on common stock is 9.1%. If these sources of capital are weighted 0.08, 0.28, and 0.64 respectively, and the firm's tax rate is 28.96%, what is the firm's weighted average cost of capital? a. 6.64% b. 7.56% c. 7.11% d. 7.7% e. 6.8%

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