What would be the weighted average cost of capital with the following details; cost of equity is 10%, pretax cost of debt is 15%, the tax rate is 30%, and cost of preference shares is 5%? It has been also noticed that the company maintains a 50-50 percent of debt and equity capital structure.

1. 10.20%
2. 12.25%
3. 10.25%
4. 11.20%
5. 12.30%

Answer rating: 100% (QA)

The weighted average cost of capital with the given details would be 10 25 1 Calc... View the full answer