What is wacc of cto transport

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Reference no: EM131964425

Question: CTO Transport has an aftertax cost of debt of 6.8 percent, a cost of equity of 14.2 percent and a cost of preferred stock of 8.5 percent. The firm has 50,000 shares of common stock outstanding at a market price of $43 a share. There are 20,000 shares of preferred stock outstanding at a market price of $46 a share. The bond issue has a total face value of $500,000 and sells at 97 percent of face value. The tax rate is 35 percent. What is WACC?

Reference no: EM131964425

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