Jose Hartmann Enterprises has a project that they are wanting to fund.
|
Source
|
Total Available
|
Cost of Source
|
|
Common Stock
|
$7,325,000
|
20.55%
|
|
Preferred Stock
|
$810,000
|
5.90%
|
|
Bonds
|
$152,625
|
3.89%
|
|
Loans
|
$500,000
|
4.5%
|
Accountants have pulled the capital financing data for Jose's consideration below, who is asking you to calculate his Average Weighted Cost of Capital (WACC).