### Weighted Averages

Calculate Company A's weighted average cost of debt, given the following information: (a) Tax Rate: 20%, (b) Average Price of Outstanding Bonds: $1,120, (c) Coupon Rate: 5%, (d) NPER: 27, (e) Debt: $33,000,000, (f) Equity: $24,000,000, and (g) Preferred Stock: $5,000,000. Calculate Company B's weighted average cost of equity