Eventide, Inc., has 10-year bonds with a total market value of $15,000,000 and 15-year bonds with a total market value of $55,000,000. The pretax costs are 11 percent and 4 percent, respectively. The firm also has common stock with a total market value of $75,000,000 and a pretax cost of 13%. The tax rate is 21 percent.

What is the firm's WACC?

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC we need to calculate the proportion of each ... View the full answer