XYZ's capital structure is 40% debt, 60% equity and no preferred stock. The Firm may issue new bonds at a pre-tax cost of 8% and new stock at a cost of 11%. XYZ's tax rate is 50%.

 Calculate the weighted average cost of capital (show your answer as a percentage (without the percent sign) and one decimal place. example: 9.6%).

Answer rating: 100% (QA)

The weighted average cost of capital WACC can be calculated using the following formula WACC EV Re D... View the full answer