Titan Mining Corporation has 15 million shares of common stock outstanding, 1,000,000 shares of 10 percent...

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Titan Mining Corporation has 15 million shares of common stock outstanding, 1,000,000 shares of 10 percent preferred stock outstanding. Titan Mining also has 220,000 bonds outstanding with par value $1,000 each and the bonds have 18 years to maturity. The bond currently sell for 90 percent of par and has cost of debt before-tax of 12 percent. The common stock currently sells for $35 per share and has a beta of 1.25, the preferred stock currently sells for $90 per share,. The market risk premium is 12 percent, T-bills are yielding 7 percent, and the firm's tax rate is 34 percent. What is the corporation weighted average cost of capital? Titan Mining Corporation has 15 million shares of common stock outstanding, 1,000,000 shares of 10 percent preferred stock outstanding. Titan Mining also has 220,000 bonds outstanding with par value $1,000 each and the bonds have 18 years to maturity. The bond currently sell for 90 percent of par and has cost of debt before-tax of 12 percent. The common stock currently sells for $35 per share and has a beta of 1.25, the preferred stock currently sells for $90 per share,. The market risk premium is 12 percent, T-bills are yielding 7 percent, and the firm's tax rate is 34 percent. What is the corporation weighted average cost of capital?

Answer rating: 100% (QA)

Common Stock Weight ed Average Cost of Capital Risk Free Rate Beta Market Risk Premium 7 1 25 12 ... View the full answer