Engle archery inc has 8000 shares of common stock


Engle Archery, Inc. has 8,000 shares of common stock outstanding at a price per share of $61 and a rate of return of 15.2 percent. The firm has 2,000 shares of 6.8 percent preferred stock outstanding at a price of $72 a share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $100,000 and a market price equal to 103.4 percent of face value. The yield-to-maturity on the debt is 9.3 percent. What is the firm's weighted average cost of capital (in percents) if the tax rate is 26 percent?

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Financial Management: Engle archery inc has 8000 shares of common stock
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