COST OF CAPITAL - PART 1 A company's debt consists of a bank loan of $1.5 million for which it pays an annual interest r

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Cost Of Capital Part 1 A Company S Debt Consists Of A Bank Loan Of 1 5 Million For Which It Pays An Annual Interest R 1 (24.95 KiB) Viewed 39 times

COST OF CAPITAL - PART 1 A company's debt consists of a bank loan of $1.5 million for which it pays an annual interest rate of 12%, and $3 million in corporate bonds with an annual interest rate of 9%. The company's equity is $9 million, and its investors expect a return of 15.7% per year. If the corporate income tax rate is 30%, what is the company's Weighted Average Cost of Capital? TYPE THE NUMERIC ANSWER IN THE BOX AS A PERCENTAGE WITHOUT THE % SYMBOL, INCLUDE 2 DECIMALS. (Example, if the answer is 10%, type 10.00, don't type 0.1 nor 10%) la = Rs = RF + Bs(RM -RF) WACC = X(1 - t)in +(1 - 1) ea TYPE THE NUMERIC ANSWER IN THE BOX AS A PERCENTAGE WITHOUT THE % SYMBOL, INCLUDE 2 DECIMALS. (Example, if the answer is 10%, type 10.00, don't type 0.1 nor 10%)