What is the weighted average cost of capital (WACC) for a firm where debt is 40 of the firm, preferred stock is 10 of the firm, common stock is 50 of the firm, after tax cost of debt is 8 , cost of preferred stock is 12 , and cost of common stock is 18 a 12 00 b 12 38 c 12 67 d 13 40 e 16 33 ...

d 1340 Calculation of weighted avera ...

What is the weighted average cost of capital (WACC) for a firm where debt is 40% of

Question:

What is the weighted average (WACC) for a firm where debt is 40% of the firm, preferred stock is 10% of the firm, is 50% of the firm, after tax is 8%, cost of preferred stock is 12%, and cost of is 18%?
a. 12.00%
b. 12.38%
c. 12.67%
d. 13.40%
e. 16.33%

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...