A fitness equipment manufacturer is capitalized with long-term debt, preferred stock and common stock. The amount and cost of each capital source is in the table below. The cost of debt is the after-tax cost. What is the firm's weighted average cost of capital? (round to two decimal places) Amount ($) Cost (%) Long-term debt Preferred stock 800,000 4% 350,000 5% Common stock 3,900,000 5,050,000 8% Total
A fitness equipment manufacturer is capitalized with long-term debt, preferred stock and common stock. The amount and cost of each capital source is in the table below. The cost of debt is the after-tax cost. What is the firm's weighted average cost of capital? (round to two decimal places) Amount ($) Cost (%) Long-term debt Preferred stock 800,000 4% 350,000 5% Common stock 3,900,000 5,050,000 8% Total
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 7EB: Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of...
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![A fitness equipment manufacturer is capitalized with long-term debt, preferred stock and common stock. The amount
and cost of each capital source is in the table below. The cost of debt is the after-tax cost.
What is the firm's weighted average cost of capital? (round to two decimal places)
Amount ($)
Cost (%)
Long-term debt
Preferred stock
800,000
4%
350,000
5%
Common stock
3,900,000
8%
Total
5,050,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a73170e-31b8-4218-84d2-e6b7e7754746%2F46347547-a346-4953-b353-9f993cc0b57e%2Fhvn5v8t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A fitness equipment manufacturer is capitalized with long-term debt, preferred stock and common stock. The amount
and cost of each capital source is in the table below. The cost of debt is the after-tax cost.
What is the firm's weighted average cost of capital? (round to two decimal places)
Amount ($)
Cost (%)
Long-term debt
Preferred stock
800,000
4%
350,000
5%
Common stock
3,900,000
8%
Total
5,050,000
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