The capital structure for the Black Hills Surgery Center is provided below. The company plans to maintain its debt structure in the future
If the firm has a 5.5 percent after tax cost of debt, a 13.5% cost of preferred stock and an 18 percent cost of common stock, what is the firm's weighted average cost of capital (WACC)?
Capital Structure (in K's)
Bonds $1,083
Preferred Stock $268
Common Stock $3,681
$5,032