2024 – PP G estimates that the yield on their debt is 6 The equity has
Finance Help For PAVAN1001 ONLY – 2024
PP&G estimates that the yield on their debt is 6%. The equity has a beta of 1.35. The risk-free return is 5% and the market risk premium is 10%. What is the weighted average cost of capital for the firm if they have $48M in debt and $32M in equity? The tax rate is 40%.
A. |
6.86% |
|
B. |
11.00% |
|
C. |
9.56% |
|
D. |
8.84% |
R&B issues 2 million shares of $9 cumulative preferred stock at a price of $77 per share. Issue costs are $2 per share. What is the cost of the preferred stock? Round your answer to the nearest whole %
______________????
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