The following are some financial data pertaining to Czy Corporation: Capital Structure (In Millions) Long-term debt (12% interest rate) P140 Stockholder’s Equity: Common stocks, P10 par value P40 Additional paid-in-capital 400 Retained Earnings 420 860 Total P1000 Czy Corporation’s common stock is currently selling at par. The current market return is 14% and the risk-free is 10%. The beta value for Czy Corporation is 1.20. It pays income tax at the rate of 30% of taxable income. Question: The weighted average cost of capital is ? Group of answer choices 14.80% 11.48% 13.91% 22.96%
The following are some financial data pertaining to Czy Corporation:
Capital Structure (In Millions)
Long-term debt (12% interest rate) P140
Common stocks, P10 par value P40
Additional paid-in-capital 400
Total P1000
Czy Corporation’s common stock is currently selling at par. The current market return is 14% and the risk-free is 10%. The beta value for Czy Corporation is 1.20. It pays income tax at the rate of 30% of taxable income.
Question: The weighted average cost of capital is ?
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