Cost of capital for the company assets


Question: A long-term bond has been issued with a market value of $50 million and an expected return of 9%. The company has 4 million shares outstanding trading for $10 each. At this price the shares offer an expected return of 17%. What is the weighted-average cost of capital for the company's assets and operations if the company does not pay any taxes?

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Finance Basics: Cost of capital for the company assets
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