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# Information on Inkscape Co., is shown below. Assume the company's tax rate is 30 percent. The firm has no debt. Common stock: 217,273 shares...

Information on Inkscape Co., is shown below. Assume the company's tax rate is 30 percent. The firm has no debt.
Common stock: 217,273 shares outstanding, selling for \$93.8 per share; beta is 0.8.
Preferred stock: 24,836 shares of 5 percent preferred stock outstanding, currently selling for \$104.9 per share.
Market: 8.55 percent market risk premium and 3.87 percent risk-free rate.
Calculate the WACC. Enter answer in percents

Solution:Computation of Weighted average cost of capital (WACC):WACC = (Kd*Wd)+(Ke*We)+(Kp*Wp)
Where,
K(d) = Cost of debt
W(d) = Weight of debt
K(e) = Cost of equity
W(e) = Weight of equity
K(p) =...

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