10 TB 14-141 Sam's Souvenir Shop has a cost of debt of 8... Return to question 2 points Sam's Souvenir Shop has a cost of debt of 8%, a cost of equity of 12%, and a cost of preferred stock of 9%. The firm has 116,000 shares of common stock outstanding at a market price of $24 a share. There are 51,000 shares of preferred stock outstanding at a market price of $38 a share. The bond issue has a face value of $900,000 and a market quote of 105. The company's tax rate is 35%. What is the weighted average cost of capital for Sam's Souvenir Shop? Multiple Choice О 12.59% 9.84% О 14.94% О 9.18% О 10.32%
10 TB 14-141 Sam's Souvenir Shop has a cost of debt of 8... Return to question 2 points Sam's Souvenir Shop has a cost of debt of 8%, a cost of equity of 12%, and a cost of preferred stock of 9%. The firm has 116,000 shares of common stock outstanding at a market price of $24 a share. There are 51,000 shares of preferred stock outstanding at a market price of $38 a share. The bond issue has a face value of $900,000 and a market quote of 105. The company's tax rate is 35%. What is the weighted average cost of capital for Sam's Souvenir Shop? Multiple Choice О 12.59% 9.84% О 14.94% О 9.18% О 10.32%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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TB 14-141 Sam's Souvenir Shop has a cost of debt of 8...
Return to question
2
points
Sam's Souvenir Shop has a cost of debt of 8%, a cost of equity of 12%, and a cost of preferred stock of 9%. The firm has
116,000 shares of common stock outstanding at a market price of $24 a share. There are 51,000 shares of preferred
stock outstanding at a market price of $38 a share. The bond issue has a face value of $900,000 and a market quote of
105. The company's tax rate is 35%. What is the weighted average cost of capital for Sam's Souvenir Shop?
Multiple Choice
О
12.59%
9.84%
О
14.94%
О
9.18%
О
10.32%
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