Solids Corporation has a cost of equity of 11.5 percent and an aftertax cost of debt of 4.35 percent. The company's balance sheet lists long-term debt of $325,000 and equity of $585,000. The company's bonds sell for 96.1 percent of par and market-to-book ratio is 2.71 times. If the company's tax rate is 21 percent, what is the WACC?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC we need to consider the weights of equity and ... View the full answer