Weighted average cost of capital for pearson

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Pearson International Souvenir Shop has a cost of debt of 8%, Cost of equity of 12% and a cost of preferred stock of 9%. The firm has 116,000 shares of common stock outstanding at a market price of $24 per share. There are 51,000 shares of preferred stock outstanding at a market price of $38 per share. The Bond issue has a face value of $900,000 and a market quote of 105. Company's tax rate is 35%. What is the weighted average cost of capital for Pearson?

Reference no: EM132666937

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