A company has a cost of debt of 6.5%, a cost of equity of 12.60%,...
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A company has a cost of debt of 6.5%, a cost of equity of 12.60%, and a cost of preferred stock of 7.4%. The firm has 60,000 shares of common stock outstanding at a market price of $65 a share. There are 8,000 shares of preferred stock outstanding at a market price of $55 a share. The bond issue has a total face value of $3,000,000 and sells at 98% of face value. The tax rate is 25%. What is the weighted average cost of capital for the company? O 8.96% 9.80% 9.17% 9.38% 9.59%
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