3. If a company has a capital structure of $5 million common stock with a cost of 17%, $2 million bonds at 4%, $1 millio
Posted: Thu May 19, 2022 12:14 am
3. If a company has a capital structure of $5 million common
stock with a cost of 17%, $2 million bonds at 4%, $1 million of
Short Term Debt with a cost of 7%, and $2 million preferred stock
with a cost of 3%, what is the Weighted Average after tax Cost of
long term debt? The company has a 35% tax rate.
stock with a cost of 17%, $2 million bonds at 4%, $1 million of
Short Term Debt with a cost of 7%, and $2 million preferred stock
with a cost of 3%, what is the Weighted Average after tax Cost of
long term debt? The company has a 35% tax rate.