Find the weighted-average cost of capital for a firm with a total asset value of $100M and a total equity value of $78M,

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answerhappygod
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Find the weighted-average cost of capital for a firm with a total asset value of $100M and a total equity value of $78M,

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Find the weighted-average cost of capital for a firm with a
total asset value of $100M and a total equity value of $78M, taken
from their balance sheet. The total value of the firm, estimated
from its traded securities, is $200M. The firm’s stock is currently
trading for $34 per share and the company has 4.3M shares
outstanding. The company’s bonds, which are considered long-term,
have a YTM of 8.7% and the expected return for equity is 17% and
their tax rate is 24%
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