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Wireless Technology Corp. has 950,000 shares of common stock outstanding at a market price of $41 a share. The company also has 40,000 bonds outstanding
Wireless Technology Corp. has 950,000 shares of common stock outstanding at a market price of $41 a share. The company also has 40,000 bonds outstanding that are quoted at 103 percen of their $1,000 face value. The firm's tax rate is 27%. In computing the firm's' weighted average cost of capital, what weight should be used on the after-tax cost of the debt? (round answer to whole number with one decimal point: i.e., use 15.2 percent instead of 0.1523 )
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