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The Rainforest, Inc. uses a mixture of common stock, preferred stock, and debt to finance its operations. In its capital structure, the market value of
The Rainforest, Inc. uses a mixture of common stock, preferred stock, and debt to finance its operations. In its capital structure, the market value of the companys equity is three times greater than the market value of its preferred stock.
Weighted average cost of capital of 7.1 percent. Cost of equity is 10.3 percent. Cost of preferred is 8.5 percent. Cost of debt is 5.2 percent. The corporate tax rate is 21 percent.
What are the capital structure weights?
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