Your firm has issued 10,000 bonds with a market price of $103 per bond. The firm also has 30,000 common shares outstanding at a price of $34 per share. If the common shares will pay a dividend of $1.40 at the end of the year and there after dividends will grow at a rate of 3 percent. If the after tax yield on the firms bonds is 6%, what is the firms weighted average cost of capital?

Answer rating: 100% (QA)

Heres how to calculate the firms weighted average cost of capital WACC 1 Calculate the market value ... View the full answer