Question: WACC Calculation Using the Capitalization Table for Caracol Co. below, calculate the Weighted Average Cost of Capital for Caracol Co. if the firm subject to
WACC Calculation Using the Capitalization Table for Caracol Co. below, calculate the Weighted Average Cost of Capital for Caracol Co. if the firm subject to a 21 percent marginal tax rate. Caracol Co. Capitalization Table Share Price Market Value Weight Debt www -n/a- $ 175,000,000 28.01% Preferred Stock $ 13.50 $ 33,750,000 5.40% Common Stock $ 32.00 $ 416,000,000 66.59% Total Capitalization $ 624,750,000 100.00% Pretax Cost 9.44% 7.41% 6.96% Enter your final answer in WHOLE numbers rounded to 2 decimal places For Example: Enter 13.2312% as 13.23
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