Queston 1

Given the following information on Big Brothers, Inc. capital structure, compute the company’s weighted average cost of capital (WACC). The company’s marginal tax rate is 40%. 

Round the answer to two decimal places in percentage form. 

Type of Capital            Percent of Captial Structure            Before Tax Component Cost

Bonds                               42%                                                     12.62%

Preferred Stock                19%                                                      17.35%

Common Stock              please calculate it                                    16.75%

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Queston 1

Given the following information on Big Brothers, Inc. capital structure, compute the company’s weighted average cost of capital (WACC). The company’s marginal tax rate is 40%. 

Round the answer to two decimal places in percentage form. 

Type of Capital            Percent of Captial Structure            Before Tax Component Cost

Bonds                               42%                                                     12.62%

Preferred Stock                19%                                                      17.35%

Common Stock              please calculate it                                    16.75%

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