The BBQ Co. has the following capital structure:

Bonds                     $45, 000,000

Preferred Stock       $18,000,000

Common Stock       $95,000,000

Retained Earnings   $68,000,000

The specific costs of capital are as follows:

Bonds                     6.1%

Preferred Stock       7.9%

Common Stock       11.8%

Retained Earnings   10.7%

Calculate the WACC , Show work

Answer rating: 100% (QA)

The WACC weighted average cost of capital for The BBQ Co can be calculated as follows Step 1 Calcula... View the full answer