Question: 5. Using the information below, please complete the calculation of the weighted average cost of capital for Sample company: Number of shares outstanding 58.1 million

5. Using the information below, please complete the calculation of the weighted average cost of capital for Sample company:
Number of shares outstanding 58.1 million
Market price of shares outstanding $ 52.00
Market value of debt equals the book value of debt
Pretax cost of debt 8.00%
Marginal tax rate 27.00%
Cost of equity 12.00%
Component Component cost Component value Component weight Weighted cost
Debt
Equity
Weighted average cost of capital ................................................................................................

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