Western Electric has 24,000 shares of common stock outstanding at a price per share of $63...

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Finance

Western Electric has 24,000 shares of common stock outstandingat a price per share of $63 and a rate of return of 13.80 percent.The firm has 6,500 shares of 6.20 percent preferred stockoutstanding at a price of $87.00 per share. The preferred stock hasa par value of $100. The outstanding debt has a total face value of$356,000 and currently sells for 103 percent of face. The yield tomaturity on the debt is 7.60 percent. What is the firm's weightedaverage cost of capital if the tax rate is 40 percent?
Multiple choice...
10.08%
11.33%
10.87%
10.49%
10.30%

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Western Electric has 24,000 shares of common stock outstandingat a price per share of $63 and a rate of return of 13.80 percent.The firm has 6,500 shares of 6.20 percent preferred stockoutstanding at a price of $87.00 per share. The preferred stock hasa par value of $100. The outstanding debt has a total face value of$356,000 and currently sells for 103 percent of face. The yield tomaturity on the debt is 7.60 percent. What is the firm's weightedaverage cost of capital if the tax rate is 40 percent?Multiple choice...10.08%11.33%10.87%10.49%10.30%