Examine the following book-value balance sheet for University Products, Inc. The preferred stock currently sells for $10 per share and the common stock for $16 per share.
If the preferred stock pays a dividend of $2 per share, the beta of the common stock is 0.2, the market risk premium is 12%, the risk-free rate is 8%, and the firm%u2019s tax rate is 30%, what is University%u2019s weighted-average cost of capital?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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