Given an optimal capital structure

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Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost for capital. Coupon rate on bonds: 9 %. Yield to maturity on bonds: 11% next expected dividend on common stock 3.00$, current price for common stock, 80$, growth rate of common stock dividend: 6%. Tax rate: 25%.  Is it less that 7.5%, more than 7.5 and less than 9.5, more than 9.5 and less than 10.5, or more than 10.5?

Reference no: EM13951632

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