Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the company given the following additional information:
A) Less than 6%.
B) More than 6% and less than 7%.
C) More than 7% and less than 8%.
D) More than 8%.

Question

Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the company given the following additional information: 
A) Less than 6%. 
B) More than 6% and less than 7%. 
C) More than 7% and less than 8%. 
D) More than 8%.

Quizplus · Accepted Answer

The Answer of Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the company given the following additional information: 
A) Less than 6%. 
B) More than 6% and less than 7%. 
C) More than 7% and less than 8%. 
D) More than 8%.

Given an Optimal Capital Structure That Is 50% Debt and 50