Wayco industrial supply has an after-tax cost of debt of 92


Wayco Industrial Supply has an After-Tax cost of debt of 9.2 percent, a cost of equity of 14.3 percent, and a cost of preferred stock of 5.5 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,000 shares of preferred stock outstanding at a market price of $41 a share. The bond issue has a Total Book Value of $550,000, but a current Market Value per bond of $1,012. What is the firm's weighted average cost of capital?

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Financial Management: Wayco industrial supply has an after-tax cost of debt of 92
Reference No:- TGS01423875

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