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What is the weighted average cost of capital

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    Assignment ID: FG133056726

    A firm has $5.1 Billion debt outstanding, with a yield to maturity of 4.2% and a coupon rate of 4.4%. They have 189 million preferred shares outstanding, currently trading at $81.15. They also have 891 million common shares outstanding, currently trading at $38.73 and the corporate tax rate is 23%. If the return on common stock (return on equity) is 8.9% and the return on preferred stock is 6.5% what is the Weighted Average Cost of Capital (WACC)?

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