The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in € thousands) is as follows: Cash and marketable 2,200 € Short-term debt € 76,300 securities Accounts receivable 120,700 Accounts payable 62,700 € 139,000 Inventory 125,700 € 248,600 Current liabilities Current assets Property, plant, and equipment 212,700 Long-term debt 209,300 Deferred taxes 45,700 88,300 Other assets Shareholders' equity 247,000 Total € 595,300 € 595,300 Total The debt has just been refinanced at an interest rate of 4.25% (short term) and 6.25% (long term). The expected rate of return on the company's shares is 13.25%. There are 7.53 million shares outstanding, and the shares are trading at €53. The tax rate is 25%. Calculate this company's weighed-average cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Weighed-average cost of capital
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The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in € thousands) is as follows: Cash and marketable 2,200 € Short-term debt € 76,300 securities Accounts receivable 120,700 Accounts payable 62,700 € 139,000 Inventory 125,700 € 248,600 Current liabilities Current assets Property, plant, and equipment 212,700 Long-term debt 209,300 Deferred taxes 45,700 88,300 Other assets Shareholders' equity 247,000 Total € 595,300 € 595,300 Total The debt has just been refinanced at an interest rate of 4.25% (short term) and 6.25% (long term). The expected rate of return on the company's shares is 13.25%. There are 7.53 million shares outstanding, and the shares are trading at €53. The tax rate is 25%. Calculate this company's weighed-average cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Weighed-average cost of capital
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