TB $14-141$ Sam's Souvenir Shop has a cost of debt of $8...$

$2$

points

Sam's Souvenir Shop has a cost of debt of $8\%,$ a cost of equity of $12\%,$ and a cost of preferred stock of $9\%.$ The firm has

$116,000$ shares of common stock outstanding at a market price of $$24$ a share. There are $51,000$ shares of preferred

stock outstanding at a market price of $$38$ a share. The bond issue has a face value of $$900,000$ and a market quote of

The company's tax rate is $35\%.$ What is the weighted average cost of capital for Sam's Souvenir Shop?

Multiple Choice

$12\mathrm{.}59\%$

$9\mathrm{.}84\%$

$14\mathrm{.}94\%$

$9\mathrm{.}18\%$

$10\mathrm{.}32\%$