AZ Products has 140,000 shares of common stock outstanding at a market price of $27...
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Finance
AZ Products has 140,000 shares of common stock outstanding at a market price of $27 a share. AZ Products just paid an annual dividend of $1.25 a share and the dividend growth rate is 2 percent. The company also has 2,500 bonds outstanding with a face value of $1,000 per bond. The bonds have a pretax yield of 7.35 percent and sell at 108.2 percent of face value. The company's tax rate is 21 percent. What is the weighted average cost of capital?
*Answer should be 6.34%*
*Show work please!*
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