What is baks weighted average cost of capital, Finance Basics

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What is baks weighted average cost of capital

Problem

BAK Inc. has a market capitalization of $630 million and a market value of debt of $466 million. According to CAPM, BAK's cost of equity capital is 7.4% and BAK's outstanding bonds have an average yield of 4.2%. BAK's tax rate is 26%. What is BAK's weighted average cost of capital? Input your answer as a decimal rounded to 4 decimal places.

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Finance Basics: What is baks weighted average cost of capital

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