Green Yards has a capital structure of 50 % common stock, 15 % preferred stock, and 35 % debt. The flotation costs are 3 % for debt, 6 % for preferred stock, and 8 % for common stock. What is the weighted average flotation cost?

Question

Quizplus · Accepted Answer

The Answer of Green Yards has a capital structure of 50 % common stock, 15 % preferred stock, and 35 % debt. The flotation costs are 3 % for debt, 6 % for preferred stock, and 8 % for common stock. What is the weighted average flotation cost?

Green Yards Has a Capital Structure of 50 % Common