What is abcs weighted average cost of capital

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ABC's capital structure is limited to common equity and bonds. Its target capital structure calls for 79 percent common equity and the rest long term debt. The company's outstanding bonds have a yield to maturity of 4.1 percent. The market risk premium for the average common stock is 8.1 percent, and the risk-free rate on US Treasuries is 5.5. ABC's beta is 1.85. Given its tax rate of 40 percent, what is ABC's weighted average cost of capital? (Show your answer in decimal for to three places, e.g., 12.3% would be entered as 0.123)

Reference no: EM131527386

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