What is the firms weighted average cost of capital

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Reference no: EM131184495

Ty Gurwoods, Inc. has a target capital structure pf 40% debt and 60% common equity and has a 40% marginal tax rate.

If Ty's yield to maturity on bonds is 7.5% and investors require a 15% return on Ty's common stock, what is the firm's weighted average cost of capital?

Reference no: EM131184495

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