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Western Electric has 23,500 shares of common stock outstanding at a price per share of $62 and a rate of return of 13.85 percent. The
Western Electric has 23,500 shares of common stock outstanding at a price per share of $62 and a rate of return of 13.85 percent. The firm has 6,450 shares of 6.10 percent preferred stock outstanding at a price of $86.50 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $353,000 and currently sells for 102.5 percent of face. The yield to maturity on the debt is 7.57 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent? 10 85% 11.30% 10.47% 10.28% 10.06%
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