Company os going to issue new common shares that will have afer tax Issue costs of 5% .the common share currentlY sell for $30and the current cost of capital of equity is 8.55%. the cost of debt before taxes is 8%and the tax rate is 40%. the cost of preferrred share is 10%. the percentage of the capital structure from the debt is 30%, from thr common share is 45% from the prefrence share is 25%.

What is the WACC of funds if the external funding is required?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC for the company when external funding is requ... View the full answer