Given the following information about the capital structure of Big Brothers, Inc., calculate the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.

Round your answer to two decimal places as a percent. (Type the percent sign in the "units" box)

Type of capital	Percentage of capital structure	Component cost before tax
Captivity	38%	8,23%
Preferred stock	17%	12,40%
Common actions	please calculate	13,40%

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC we need to take a weighted average of the com... View the full answer