Business Finance Homework Help
Business Finance Homework Help. Weighted average cost of capital (WACC)
Given the following information on Big Brothers, Inc. capital structure, compute the company’s weighted average cost of capital (WACC). The company’s marginal tax rate is 40%.
Round the answer to two decimal places in percentage form.
| Type of Capital | Percent of Capital Structure | Before-Tax Component Cost |
|---|---|---|
| Bonds | 41% | 13.46% |
| Preferred Stock | 14% | 15.89% |
| Common Stock | Please calculate it | 17.73% |
Business Finance Homework Help
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