Wayco industrial supply has a pretax cost of debt of 76


Wayco Industrial Supply has a pretax cost of debt of 7.6 percent, a cost of equity of 16.8 percent, and a cost of preferred stock of 9.1 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,000 shares of preferred stock outstanding at a market price of $41 a share. The bond issue has a face value of $550,000 and a market quote of 101.2. The company's tax rate is 34 percent. What is the firm's weighted average cost of capital?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Wayco industrial supply has a pretax cost of debt of 76
Reference No:- TGS01178487

Expected delivery within 24 Hours