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General Talc Mines has compiled the following data regarding the marker value and cost of the specific sources of capital. Market price per share of common stock-$50. Market value of long-term debt-$980 per bond.
The weighted average cost of capital using market value weights is: ________.
A- 11.7%
B- 13.5%
C- 15.8%
D- 17.5%
E- 14.4%

Respuesta :

Zviko

Answer:

D- 17.5%

Explanation:

Hi your question was incomplete see the  attached  full question as an image

The Average Cost of Capital is the return that is required by providers of Long term Permanent Sources of Finance

WACC = 8% × 0.05 + 19% × 0.95

           = 18 %

Ver imagen Zviko

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