Charlotte's Crochet Shoppe has 16,100 shares of common stock outstanding at a price per share of $81 and a rate of return of 11.85 percent. The company also has 340 bonds outstanding, with a par value of $2,000 per bond. The pre-tax cost of debt is 6.25 percent and the bonds are selling at 99 percent of par. What is the company's WACC if the tax rate is 35 percent?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC we need to consider the proportion of equity ... View the full answer