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The cost of capital will be the same for new securities as


Think Smart Company has the following figures for you as of December 31, 2007:
a. 

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b. Tax rate is 40%

What is the weighted average cost of capital (WACC) for 2007?

In 2008, the company will invest $8,000,000 in new projects. The financing will be: 

$4,000, 000 Common Stock; $4,000,000 Bonds. The cost of capital will be the same for new securities as it was in 2007. What will be the WACC on capital structure based ontotal?

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Finance Basics: The cost of capital will be the same for new securities as
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