Given the following information on Big Brothers Inc. capital structure, compute the company’s weighted average cost of capital
Given the following information on Big Brothers Inc. capital structure, compute the company’s weighted average cost of capital (WACC). The company marginal tax rate is 40%.
Round the answer to two decimal places in percentage form
Type of Capital Percent of Capital Structure Before-Tax Component Cost
Bonds 34% 10.35%
Preferred Stock 15% 14.88%
Common Stock Please calculate it 17.08%
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