Go-go inc is thinking about investing in a new project what


Go-Go Inc. is thinking about investing in a new project. The balance sheet reports that they currently have $22 million worth of long-term debt and $18 million worth of common equity. Their current cost of debt is 4%. According to Yahoo.Finance.com the current required return to Go-Go's stock is 14%, the company has 1.5 million shares of stock outstanding and the stock currently trades for $32 per share. If their average tax rate is 34% and they have no preferred stock, what Go-Go's weighted average cost of capital? 7.75% None of these 10.43% 9.00% 10.86%

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Go-go inc is thinking about investing in a new project what
Reference No:- TGS02349636

Expected delivery within 24 Hours