Weighted Average Cost of Capital?

Question

When calculating WACC where do you get the interest rates for retained earnings and common stock?

Answer 1

the cost of capital for RE and common should come from a careful capital market analysis of similar size companies with similar operating and financial leverage, plus current market interest rates.

my guess is that your undergrad finance course is no where close to beginning to teach you how to do this ... so read your texts again and if you don't find the answer they want you to use, ask the TF or Professor for help.

That's what office hours are for.

Answer 2

it would be numbers