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What is your firm's Weighted Average Cost of Capital (input as a raw number rounded to four digits, i.e. if your answer is 7.1356%, enter
What is your firm's Weighted Average Cost of Capital (input as a raw number rounded to four digits, i.e. if your answer is 7.1356%, enter 7.1356)? Corporate taxes are 21%. The firm is financed with the following securities: Common Equity: 4800000 shares price per share = $47 =1.10, Mkt Risk Premium = 5%, Risk-free rate = 3%. Debt: 220000 bonds face value per bond = $1000 market price per bond= $1095 coupon rate = 3%, 5 years to maturity (assume semi-annual payment).
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