A firm has common stock with a market value of $500 million, preferred stock of $60 million, and debt worth $210 million. The cost of the common stock, rS, is 11%/year, the cost of preferred stock, rPS, is 7% and the cost of debt, rD, is 5%. The tax rate is 21%. 

What is the firm's weighted average cost of capital, WACC?

Answer rating: 100% (QA)

The weighted average cost of capital WACC is the average cost of all of a company... View the full answer