Homework #6G (WACC)

Homework #6G (WACC)

Finance

Question 2 (1 point)

 

The Black Bird Company plans an expansion. The expansion is to be financed by selling $133 million in new debt and $57 million in new common stock. The before-tax required rate of return on debt is 9.30% percent and the required rate of return on equity is 17.17% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

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