{"id":5766,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"http:\/\/essaysparlor.com\/a-company-has-100-million-shares-outstanding-trading-for-5-per-share-it-also-has-600-million-in-outstanding-debt-if-its-equity-cost-of-capital-is-12-and-its-debt-cost-of-capital-is-10-and-its\/"},"modified":"2017-02-20T19:27:36","modified_gmt":"2017-02-20T19:27:36","slug":"a-company-has-100-million-shares-outstanding-trading-for-5-per-share-it-also-has-600-million-in-outstanding-debt-if-its-equity-cost-of-capital-is-12-and-its-debt-cost-of-capital-is-10-and-its","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/a-company-has-100-million-shares-outstanding-trading-for-5-per-share-it-also-has-600-million-in-outstanding-debt-if-its-equity-cost-of-capital-is-12-and-its-debt-cost-of-capital-is-10-and-its\/","title":{"rendered":"A company has 100 million shares outstanding trading for $5 per share. It also has $600 million in outstanding debt. If its equity cost of capital is 12%, and its debt   cost of capital is 10%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital?"},"content":{"rendered":"<p>A company has 100 million shares outstanding trading for $5 per share. It also has $600 million in outstanding debt. If its equity cost of capital is 12%, and its debt<br \/>\ncost of capital is 10%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A company has 100 million shares outstanding trading for $5 per share. It also has $600 million in outstanding debt. If its equity cost of capital is 12%, and its debt cost of capital is 10%, and its effective corporate <a href=\"https:\/\/www.benedictsol.com\/blogs\/a-company-has-100-million-shares-outstanding-trading-for-5-per-share-it-also-has-600-million-in-outstanding-debt-if-its-equity-cost-of-capital-is-12-and-its-debt-cost-of-capital-is-10-and-its\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-5766","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/5766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=5766"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/5766\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=5766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=5766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=5766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}