Beth Jones has an engineering firm. She wants to build a new headquarters building. The building will cost $1,500,000. She will put down $450,000 and have bank finance the remainder at prime plus 2 percent. The prime lending rate is currently 6.5 percent. Beth will withdraw the money for the down payment from her mutual fund account where she has earned 11% for the last 10 years. What is Beth s weighted average cost of capital?

Answer rating: 100% (QA)

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