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Charlotte's Crochet Shoppe has 13,100 shares of common stock outstanding at a price per share of...

Charlotte's Crochet Shoppe has 13,100 shares of common stock outstanding at a price per share of $71 and a rate of return of 11.45 percent. The company also has 400 bonds outstanding, with a par value of $1,000 per bond. The pretax cost of debt is 6.05 percent and the bonds sell for 96 percent of par. What is the firm's WACC if the tax rate is 39 percent?

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After Tax cost of Debt Pretax cost of Debt*(1-Tax rate) 0.0605*(1-0.39) 0.036905 3.69% cost Market value weight $ 384,000.00

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