Geothermal's cost of debt is 4.5%, the dividend yield on the preferred is 7.1%, the cost...

 

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Geothermal's cost of debt is 4.5%, the dividend yield on the preferred is 7.1%, the cost of equity is 9.7%, and the tax rate is 22%. The company uses 25% of debt in its capital structure and 14% of preferred; the rest is common equity. The weighted average cost of capital for the company is ..% (accurate to 4 decimals) Geothermal's cost of debt is 4.5%, the dividend yield on the preferred is 7.1%, the cost of equity is 9.7%, and the tax rate is 22%. The company uses 25% of debt in its capital structure and 14% of preferred; the rest is common equity. The weighted average cost of capital for the company is ..% (accurate to 4 decimals)

Answer rating: 100% (QA)

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