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Capital structure before-tax component cost

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Reference no: EM132558400

Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Type of Capital Percent of Capital Structure Before-Tax Component Cost

Bonds 44% 14.39%

Preferred Stock 12% 17.22%

Common Stock Please calculate it 13.42%

Reference no: EM132558400

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