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Posted by: Homeworkhelp
Price Quoted by Student: $5
Posted On: 2010-07-16 01:01:05
 
Question

The capital structure for the Bias Corporation follows. The company plans to maintain its debt structure in the future. If the firm has a 6 percent after-tax cost of debt, a 13.5 percent cost of preferred stock, and a 19 percent cost of common stock, what is the firm's weighted cost of capital?

Capital structure           ($000)

Bonds                          1,100

Preferred stock                        250

Common stock                        3,700


Solutions
5. (Weighted cost of capital) The capital structur
Price $5
Attachment 1: Bias Corporation .xls
Solution Posted By: Homeworkhelp    Posted on: 16-07-2010