The market value of common stock of a firm is $400 million. The market value of preferred stock is $60 million. The market value of debt is $140 million. The yield to maturity of debt is 5.8% and the dividend yield for the preferred stock is 7.2%. The required rate of return for common stock is 12%. The tax rate is zero. 

What is the weighted average cost of capital for the firm?

Answer rating: 100% (QA)

The weighted average cost of capital WACC is the average cost of all the ca... View the full answer