CTO Transport has an aftertax cost of debt of 5.6 percent, a cost of equity of 13.7
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CTO Transport has an aftertax cost of debt of 5.6 percent, a cost of equity of 13.7 percent, and a cost of preferred stock of 7.8 percent. The firm has 60,000 shares of common stock outstanding at a market price of $45 a share. There are 12,000 shares of preferred stock outstanding at a market price of $52 a share. The bond issue has a total face value of $400,000 and sells at 102 percent of face value. The tax rate is 35 percent. What is the company’s WACC?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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