Please show work or you will not get 5 stars! Western Electric has 23,000 shares
ID: 2679297 • Letter: P
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Please show work or you will not get 5 stars!
Western Electric has 23,000 shares of common stock outstanding at a price share of $57 and a rate of return of 14.2 percent. The firm has 6,000 shares of preferred stock outstanding at a price of $48 a share. The preferred stock pays a fixed dividend of $7 per share every period. The outstanding debt has a total face value of $350,000 and currently sells for 102 percent of face value. The yield-to-maturity on the debt is 8.49 percent. What is the firm's weighted average cost of capital if the tax rate is 34 percent? 12.69 percent 13.44 percent 14.19 percent 14.47 percent 14.92 percentExplanation / Answer
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