Assume a for-profit company has $ 8 million of long term debt with an interest rate of 6% . it has $ 3 million of preferred stock with a required dividend rate of 8% and $4 millions of common stock that is estimated to have a cost of capital of 10 % . what is its weighted average cost of capital ?

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC we need to take into account the proportions ... View the full answer