Acompany has a capital structure that includes 30 debts, 10 preferred stock, and 60% common stock. the before-tax cost of debt is 11%. the cost of preferred stock is 10.3%. the cost of common stock is 14.7%. new common stock sales cost approximately 16%. the marginal tax rate is 40%. according to the above information, what is the weighted average cost of capital for this company?
a. 10.3%
b. 11%
c. 11.8%
d. none of the above

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine