What is the weighted average cost of capital

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Reference no: EM132716152

Question - Lasco farms is a major wheat producer in Australia. The company has 10000000 shares on issue . The shares trade at $2.60 each and have a beta of 0.80. the company has a small bond issue of 12000 bonds. The bonds trade at $ 950 each and have a yield to maturity of 4%. The share market has expected return of 8% and the risk - free rate is 3%. What is the weighted average cost of capital for Lasco farms? The taxation rate is 30%.

Reference no: EM132716152

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