What is the weighted average cost of capital

Reference no: EM13269461

Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15.00 a share. This stock was originally issued at $31 per share. The firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 86 percent of par. The cost of equity is 13 percent while the aftertax cost of debt is 6.9 percent. The firm has a beta of 1.48 and a tax rate of 30 percent. What is the weighted average cost of capital?

Reference no: EM13269461

Questions Cloud

Re-enactment of the revolution : Background the Mexican Revolution. This movie is about the conflicts between the church and the state, having its roots in the Revolution.

What is the standard deviation of these returns : A stock has yielded returns of 6 percent, 11 percent, 14 percent, and -2 percent over the past 4 years, respectively. What is the standard deviation of these returns?

Find the speed an alpha particle : Find the speed an alpha particle requires to come within 2.6 ? 10-14 m of a uranium nucleus

Respect to igm antibodies : All of the following are true with respect to IgM antibodies EXCEPT which one

What is the weighted average cost of capital : The firm has a beta of 1.48 and a tax rate of 30 percent. What is the weighted average cost of capital?

Explain bake muffins for a breakfast meeting : Just as you are about to start making them, you get a call saying that the number of people coming to the meeting has doubled! Your original recipe called for three eggs. How many eggs do you need to make twice as many muffins

What is the variance of the returns on rtf : The probability of a boom is 73 percent while the probability of a recession is 27 percent. What is the variance of the returns on RTF, Inc. stock?

Differentiation sequence of human b cells in the bone marrow : Which of the following events occurs first in the differentiation sequence of human B cells in the bone marrow?

What are the total variable costs of the project : Sales are projected at 8,800 units over the 3-month life of the project. What are the total variable costs of the project?

User Account

All Pages