The bond issue has a face value of 550000 and a market


Marco Plumbing Supply has a pre-tax cost of debt of 7.6 percent, a cost of equity of 12.4 percent, and a cost of preferred stock of 8.5 percent. The firm has 410,000 shares of common stock outstanding at a market price of $19 a share. There are 30,000 shares of preferred stock outstanding at a market price of $31 a share. The bond issue has a face value of $550,000 and a market quote of 98.0. The company's tax rate is 32 percent. What is the firm's weighted average cost of capital?

10.12 percent
10.33 percent
11.31 percent
11.59 percent
12.60 percent

 

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Finance Basics: The bond issue has a face value of 550000 and a market
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