Weighted Average Cost of Capital Austin, Inc. plans to finance its expansion by raising the...
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Accounting
Weighted Average Cost of Capital Austin, Inc. plans to finance its expansion by raising the needed investment capital from the following sources in the indicated proportions and respective capital cost rates.
Capital Cost
Source
Proportion
Rate
Bonds
45%
15%
Preferred stock
10%
13%
Common stock
25%
19%
Retained earnings
20%
17%
100%
Calculate the weighted average cost of capital. Round answers to one decimal place. For example, 0.457 = 45.7%.
Weighted Average
Cost of Capital
Bonds
Answer
Preferred stock
Answer
Common stock
Answer
Retained earnings
Answer
Answer
Answer & Explanation
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