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Find able weighted average cost of capital

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Reference no: EM131317309

Able Company is selling a bond for $867. The bond is with a 20% coupon rate annually, and will mature in 10 years. The company's shareholders are receiving a 22.5% return. The company is subject to a 25% tax rate. The company has 30% debt and 70% equity. Please find Able's weighted average cost of capital.

  • 0.172
  • 0.189
  • 0.197
  • 0.201
  • 0.211
  • No enough information

Reference no: EM131317309

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