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Business, 12.08.2020 06:01 akaeiraspruell

Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15 a share. This stock was originally issued at $31 per share. The firm also has a bond issue outstanding with a total face value of $280,000 which is currently selling for 82 percent of par. The cost of equity is 14 percent while the after-tax cost of debt is 6.8 percent. The firm has a beta of 1.48 and a tax rate of 30 percent. What is the weighted average cost of capital?

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Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15 a share. This...
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