Use the following information to calculate the weighted average cost of capital (WACC) for the company Stokenshop, Inc.

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Use the following information to calculate the weighted average
cost of capital (WACC) for the company Stokenshop, Inc.
Beta of common stock = 1.2
Treasury bill rate = 4%
Market risk premium = 6.5%
Yield to maturity on long-term debt = 7%
Corporate tax rate = 21%
Capital Structure: 45% Debt; 55%Equity
a.
8.39%
b.
18.80%
c.
9.05%
d.
17.33
The capital structure of a corporation is found in the statement
of situation (Balance Sheet) that corresponds to the total of the
liabilities plus the capital of the shareholders.
Select one:
a.
TRUE
b.
False