Question: An analyst is trying to determine the capital structure for Big Dawg Incorporated. After some careful research, the analyst knows the following --Big Dawg has

An analyst is trying to determine the capital structure for Big Dawg Incorporated. After some careful research, the analyst knows the following --Big Dawg has 1.60 million shares of common stock trading today at $19.00 per share. The book value of Big Dawg common stock is $15.00 million . The cost of equity for the firm is estimated to be 12.00 %. --Big Dawg has $12.00 million in long-term debt on its balance sheet . The debt is trading at 92.00 % of face value in the market with a yield to maturity of 9.00 %. The tax rate facing the firm is 39.00 %. What is the weighted average cost of capital for Big Dawg ?

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