Mike &Mindy Inc. (M&M) has a bond issue outstanding with a total face value of...
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Mike &Mindy Inc. (M&M) has a bond issue outstanding with a total face value of $500,000 which is selling for 98 percent of face value. In addition M&M has 33,000 shares at a market price of $21per share The cost of equity is 10 percent while the after tax cost of debt is 5 percent. The firm has a beta of 1.2 and a tax rate of 35 percent.
What is M^Ms weighted average cost of capital
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