An MNC has total assets of $100 million and debt of $20 million. The firms before-tax cost

Question:

An MNC has total assets of $100 million and debt of $20 million. The firm’s before-tax is 12 percent, and its cost of financing with equity is 15 percent. The MNC has a corporate tax rate of 40 percent. What is this firm’s weighted average cost of capital?

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...