Paroles tax rate is 30 percent what is the firms weighted


Parole Co. has 72,158 bonds outstanding that are selling at par value. The bonds yield 8.8 percent. The company also has 4.7 million shares of common stock outstanding. The stock has a beta of 1.3 and sells for $46.8 a share. The U.S. Treasury bill is yielding 3.8 percent and the market risk premium is 7.8 percent. Parole's tax rate is 30 percent. What is the firm's weighted average cost of capital? Enter answer in percents.

Use Excel and show formulas.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Paroles tax rate is 30 percent what is the firms weighted
Reference No:- TGS02846367

Expected delivery within 24 Hours