A company has total financing where 25% comes from bonds and 75% from shareholders' equity. The bonds
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Question:
- A company has total financing where 25% comes from bonds and 75% from shareholders' equity. The bonds pay a 10% interest rate, and shareholders require a 5% return. What is the company's weighted average cost of capital (WACC)?
- 11%
- 6.25%
- 13.5%
- Some other answer
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