Based on the information below, calculate the weighted average cost of capital.

Great Corporation has the following capital situation.

Debt: One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 40%

Preferred stock: Two thousand shares of preferred are outstanding, each of which pays an annual dividend of $7.50. They originally sold to yield 15% of their $50 face value. They're now selling to yield 10%.

Equity: Great Corp has 120,000 shares of common stock outstanding, currently selling at $14.48 per share. The risk free rate is 3%, market rate of return is 10% and the Beta is 1.2.

Great Corporation has the following capital situation.

Debt: One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 40%

Preferred stock: Two thousand shares of preferred are outstanding, each of which pays an annual dividend of $7.50. They originally sold to yield 15% of their $50 face value. They're now selling to yield 10%.

Equity: Great Corp has 120,000 shares of common stock outstanding, currently selling at $14.48 per share. The risk free rate is 3%, market rate of return is 10% and the Beta is 1.2.

Subject | Mathematics |

Due By (Pacific Time) | 04/23/2013 10:00 pm |

Tutor | Rating |
---|---|

pallavi Chat Now! |
out of 1971 reviews More.. |

amosmm Chat Now! |
out of 766 reviews More.. |

PhyzKyd Chat Now! |
out of 1164 reviews More.. |

rajdeep77 Chat Now! |
out of 721 reviews More.. |

sctys Chat Now! |
out of 1600 reviews More.. |

sharadgreen Chat Now! |
out of 770 reviews More.. |

topnotcher Chat Now! |
out of 766 reviews More.. |

XXXIAO Chat Now! |
out of 680 reviews More.. |