Finance

The firm’s weighted average cost of capital

The capital structure for HCA is provided below. If the firm has a 5% after tax cost of debt, 9% commerical loan rate,a 11.5% cost of preferred stock, an 15% cost of common stock, and given the dollar amounts provided below, what is the firm’s weighted average cost of capital (WACC)?

The firm’s weighted average cost of capital

The capital structure for HCA is provided below. If the firm has a 5% after tax cost of debt, 9% commerical loan rate,a 11.5% cost of preferred stock, an 15% cost of common stock, and given the dollar amounts provided below, what is the firm’s weighted average cost of capital (WACC)?

Cost of equity (fund capital)

St. David’s Hospital in Austin, Texas has a target capital structure of 35 percent debt and 65 percent equity. Its cost of equity (fund capital) estimate is 13.5 percent and its cost of debt is 7 percent. If it has a 35% tax rate, what is the hospital’s corporate cost of capital?

Cost of equity (fund capital)

St. David’s Hospital in Austin, Texas has a target capital structure of 35 percent debt and 65 percent equity. Its cost of equity (fund capital) estimate is 13.5 percent and its cost of debt is 7 percent. If it has a 35% tax rate, what is the hospital’s corporate cost of capital?

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