Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 59

Determine the weighted average cost of capital for a company that manufactures miniature triaxial ac- celerometers for space-restricted applications. The financing profile, with interest rates, is as follows: $3 million in stock sales at 15% per year, $4 mil­lion in bonds at 9%, and $6 million in retained earnings at 7% per year.