Question: answer with solution pls 4. Feast Foods is interested in calculating its weighted average cost of capital. The company's CFO has collected the following information:

answer with solution pls 4. Feast Foods is interested in calculating

answer with solution pls

4. Feast Foods is interested in calculating its weighted average cost of capital. The company's CFO has collected the following information: - The target capital structure consists of 40% debt and 60% common stock - The company has a 20-year noncallable bonds with a par value of P1,000, a 9% annual coupon, and is selling now at 92-1/4. - Equity flotation costs are 2% - The company's common stock has a beta of 0.80 - The risk-free rate is 5%; and market risk premium is 4% - The company's tax rate is 40%

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