KCG, Inc. has the following mix of funds and costs Туpe Amount Cost Debt P 150,000 18% Preferred stock 500,000 15% Common equity 700,000 12% Total funds P1,350,000 What is KCG's weighted average cost of capital? 13.77% 14.22% 15.22% 12.22%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter12: Capital Structure
Section: Chapter Questions
Problem 9PROB
icon
Related questions
Question

help please

KCG, Inc. has the following mix of funds and costs
Тype
Amount
Cost
Debt
P 150,000
18%
Preferred stock
500,000
15%
Common equity
700,000
12%
Total funds
P1,350,000
What is KCG's weighted average cost of capital?
13.77%
14.22%
15.22%
12.22%
Transcribed Image Text:KCG, Inc. has the following mix of funds and costs Тype Amount Cost Debt P 150,000 18% Preferred stock 500,000 15% Common equity 700,000 12% Total funds P1,350,000 What is KCG's weighted average cost of capital? 13.77% 14.22% 15.22% 12.22%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT