What is costello constructions weighted average cost of


Costello Construction Inc. has an unlevered cost of equity is 13.5% with a pre-tax cost of debt of 9%. Both the book and the market value of debt is $265,000. Earnings before interest and taxes are $149,000 and the tax rate is 34%.

What is Costello Construction’s weighted average cost of capital?

(Assume there is no cost of financial distress)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is costello constructions weighted average cost of
Reference No:- TGS02694165

Expected delivery within 24 Hours