# Weighted Average Cost of Capital for Metals Corp

Not what you're looking for? Search our solutions OR ask your own Custom question.

Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and $18,125,000 of common equity. Metals Corp.'s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, and newly issued common stock has a cost of 14.05%. What is Metals Copr's weighted average cost of capital?

a. 12.78%

b. 10.84%

c. 8.32%

d. 6.56%

https://brainmass.com/business/weighted-average-cost-of-capital/weighted-average-cost-of-capital-for-metals-corp-158953

#### Solution Preview

Calculate Weight for different items in the capital structure

Total capital = Debt + prefererd ...

#### Solution Summary

This solution shows stepwise calculations to determine the weight for different items in the capital structure to find the weight average cost of capital.

$2.49