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Western Electric has 2 0 , 0 0 0 shares of common stock outstanding at a price per share of $ 6 0 and a

Western Electric has 20,000 shares of common stock outstanding at a price per share of $60 and a rate of return of 15.6 percent. The firm has 10,000 shares of $8 preferred stock outstanding at a price of $48 a share. The outstanding debt has a total face value of $265,000 and currently sells for 104 percent of face. The yield to maturity on the debt is 8.81 percent. What is the firm's weighted average cost of capital if the tax rate is 25 percent? A.14.64% B.13.44% C.13.67 D.13.92% E.14.37

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