ABC Inc. borrows money at 9%, sells bonds at 6%, and the purchasers of common stock require
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ABC Inc. borrows money at 9%, sells bonds at 6%, and the purchasers of common stock require 9% rate of return. If the company has borrowed $40 million, sold $60 million in bonds, and sold $100 million worth of common stocks, what is the Weighted Average Cost of Capital (WACC)?
Enter the answer as a percentage. For example 12.34% is 12.34. Enter 2 decimal places. Do not enter the percentage symbol.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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