An accountant for Stability Inc. must calculate the weighted average cost of capital of the corporation using the following information.     Interest Rate Accounts payable $35,000,000 0 Long-term debt 10,000,000 8% Common stock 10,000,000 15% Retained earnings 5,000,000 18%   What is the weighted average cost of capital of Stability? Select one: a. 10.25% b. 6.88% c. 12.80% d. 8.00%

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An accountant for Stability Inc. must calculate the weighted average cost of capital of the corporation using the following information.

    Interest Rate
Accounts payable $35,000,000 0
Long-term debt 10,000,000 8%
Common stock 10,000,000 15%
Retained earnings 5,000,000 18%

 

What is the weighted average cost of capital of Stability?

Select one:
a. 10.25%
b. 6.88%
c. 12.80%
d. 8.00%
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