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The component costs of the capital structure for Wilhelmi Corporation have been computed in Problems 11-1, 11-2, and 11-3: K,= 7.4%, K 10.5 %, and

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The component costs of the capital structure for Wilhelmi Corporation have been computed in Problems 11-1, 11-2, and 11-3: K,= 7.4%, K 10.5 %, and K 16.4%. According to its latest balance sheet, Wilhelmi Corporation has debt with a book value of $100,000, preferred stock with a book value of $50,000, and common equity with a book value of $50,000. What is the weighted average cost of capital for Wilhelmi Corporation using book value weights? 11-4

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