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  3. let assume that rio co. has 8% before-tax cost of

let assume that Rio Co. has 8% before-tax cost of debt, 8% cost of preferred...

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Finance

let assume that Rio Co. has 8% before-tax cost of debt, 8% cost of preferred stock and 13% cost of equity.

If Rio Co. has the following capital structure: 30% debt, 20% preferred stock and 50% common equity, what is the cost of capital for Rio Co.? Assume the tax rate is 30%. Round to two decimals and do not put % in your answer.

Cost of capital = ________%

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