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(Weighted average cost of capital) Bane Industries has a capital structure consisting of 61 percent common stock and 39 percent debt. The firm's investment barker
(Weighted average cost of capital) Bane Industries has a capital structure consisting of 61 percent common stock and 39 percent debt. The firm's investment barker has advised the firm that curranty selling for $80.44 per share. The firm expects to pay a $2.09 dividend nend yoar. Dividends have grown at the rate of a.2 percent per yeat and are expected to continue to do so lor the foreseeable future. What is Bane's average cost of capdal where the firm faces a tax rate of 34 percent? a. The after-tax cost of debt is \%. (Round to two decimal places.) b. The cost of common equity if K. (Pound to tro decimal places? c. Bane's average cost of capital is K. (Round to three decimal places)
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