The company also has 15000000 of bondsalso sold at par with


The Delta Company has issued a total of 25,000,000 shares of common stock at par(its value to the firm is $25, 000,000. The dividend yield is 6%. The company also has $15,000,000 of bonds(also sold at par) with a coupon rate of 4%. The tax rate for Alpha is 30%. What is its weighted average cost of capital (WACC)?

Solution Preview :

Prepared by a verified Expert
Finance Basics: The company also has 15000000 of bondsalso sold at par with
Reference No:- TGS01733842

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)