Business, 02.12.2019 18:31 jreasley3783

Listed below is financial information for central, inc.

total assets $39,673
market value of debt $11,869
average borrowing cost 8.8%
common equity:
book value $21,489
market value $42,081
marginal income tax rate 37%
market beta 1.1
risk-free rate 4.5%
market premium 4.3%

using the information from the table, calculate central's weighted-average cost of capital:

a) 6.86%
b) 7.25%
c) 8.42%
d) 10.9%

Answers: 3

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Listed below is financial information for central, inc.

total assets $39,673
mar...

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