Risk-free rate= 0.016
Market rate= 0,136
Tax rate= 0.30
A firm has a $50,000,000 loan with a interest rate of 4%, a $54,100,000 bond issue with a yield to maturity of 3% and 10,000,000 shares of stock selling at $3.47 a share. The stock's required return is 14.8%. Find the firms cost of capital.
A. 5.6%
b. none of these are correct
c. 6.3%
d. not enough information
