Business, 11.12.2019 00:31, 06jesher44395

City rentals has 44,000 shares of common stock outstanding at a market price of $32 a share. the common stock just paid a $1.50 annual dividend and has a dividend growth rate of 2.5 percent. there are 7,500 shares of $9 preferred stock outstanding at a market price of $72 a share. the outstanding bonds mature in 11 years, have a total face value of $825,000, a face value per bond of $1,000, and a market price of $989 each, and a pretax yield to maturity of 8.3 percent. the tax rate is 35 percent. what is the firm's weighted average cost of capital?

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City rentals has 44,000 shares of common stock outstanding at a market price of $32 a share. the com...