Determine the weighted average cost of capital, Finance Basics

1. The current interest rate is 6.83%.'s stock has a beta of 2.0. Estimate the cost of equity.

2. has a bond with a semiannual coupon rate of 9% and 5 year maturity. Currently it is traded at $961.39. Determine the cost of debt.

3. The preferred stock of o§ers $1.21 annual dividend and currently is traded at $11 per share. Determine the cost of preferred stock for

4. has the targeted capital structure of 30% debt, 60% equity, and 10% preferred stock. CanGo.comís tax rate is 30%. What is the WACC for's core business.

Posted Date: 2/21/2013 7:16:38 AM | Location : United States

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