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Calculate WACC The Weighted Average Cost of Capital is sometimes called the Opportunity Cost of...

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Finance

Calculate WACC

The Weighted Average Cost of Capital is sometimes called the Opportunity Cost of Capital because there is a cost of using financing.

Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock and 20% debt.The firms has a cost of debt of 6.65%, a cost of preferred stock equal to 10.88% and a 13.13% cost of common stock. The firm has a 32% tax rate. You answer should be entered as a %, for example 15.48%

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