What is a firm weighted - average cost of capital

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Question -

What is a firm's weighted - average cost of capital if the stock has a beta of 1.25, Treasury bills yield 4%, and the market portfolio offers an expected return of 13%?

Debt that has a yield to maturity of 8.5%. The firm is in the 30% marginal tax bracket. The cost of preferred stock is 8%.

The following are the market values of debt $5 million, preferred stock $3 million. The book value of common stock is $10 million with 1,000,000 shares. The current market price of common stock is $15 per share. Find the WACC.

Reference no: EM132180171

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